The Vote Is In

The Vote Is In

While we would not classify this as a non-event the FDA panel vote giving Dexcom (NASDAQ: DXCM) a non-adjunctive claim is in and it’s thumbs up. The vote actually wasn’t even close for any of the three questions the panel considered. The question now becomes will this change much in the CGM world.

The answer, of course, is yes and no. Yes, as this is a significant milestone for Dexcom so congrats for a job well done. Will this claim translate into additional sales, that as we like to say is another story. Dexcom is already considered the best CGM system on the market and is favored by patients, physicians and CDE’s. It’s also no secret that CGM is becoming more widely adopted and Dexcom is winning the lion’s share of patients new to CGM. Perhaps the best way to think about this is something Momma Kliff said about her chicken soup used as medicine; “Not sure if it helps but sure doesn’t hurt either.”

Does this give Dexcom a leg up on Medtronic (NYSE: MDT)? Sort of. The reality is with their huge installed insulin pump user base Medtronic has a built in market for their system. It is also known that this system is not yet at on par with the Dexcom system and many Medtronic pump patients use the Dexcom CGM even though it does not communicate with their insulin pump.

Longer term this votes bodes well for the disposable system the company and their partner Google is working on.

All in all, this is a victory for patients, Dexcom and the CGM market. The biggest loser here sorry to say are all the conventional glucose monitoring companies. This is just another nail in the BGM coffin, not like they needed one. So congrats to Dexcom for a job well done. Frankly we are not surprised as Dexcom is one class act and should serve as a role model for every diabetes device, heck every diabetes company. Dexcom has always put the needs of the patient first, understanding after that everything else will fall into place.