Where’s Waldo?

As we anticipated results for the Libre were strong as Abbott remains committed to their value pricing strategy. It was also no surprise that the company stated that additional manufacturing capacity is now coming online. The big question however remains Libre2, when will it be approved, and will it receive the coveted iCGM designation.

Here the company remains “confident” yet did note the FDA has asked for additional items, something we have also heard. So when will Libre2 get here, no clue. Will it get the iCGM designation, maybe? Does anyone of this really mean anything, absolutely not.

While there is lots of white noise with all the new deals announced Abbott is committed to its value strategy with Libre and nothing that has happened or will happen is going to change that. Even when the FDA eventually approves the Libre2 this strategy won’t change. Whether or not Libre2 gets iCGM the strategy won’t change. Not to be captain obvious again but since we’re in the spandex already when it comes to Libre and Abbott this is all about being the value option in the expanding CGM category.

Of course we can’t talk about what Abbott is doing and not talk about what Dexcom is doing. As we noted in previous posts just as Abbott is committed to their value strategy with Libre, Dexcom is just as committed with their premium strategy. Yes, they have to play the price game because of Abbott but this isn’t hurting sales and more importantly isn’t distracting the company from getting the G7 into the market. A product we see as slowing Libre sales and giving Abbott a serious threat in the value category.

Until then both Abbott and Dexcom will benefit from continued growth in the category. Both will benefit as CGM continues to become the standard for glucose measurement. More importantly both have entered the CGM market BEFORE CGM is used for additional indications. We know many can’t believe this but what we are seeing today in CGM is the iceberg above the water line. The future is the huge base of the iceberg which lies below the water line and cannot be seen.

The reality is all this speculation about Libre2 is fun but not all that important in the grand scheme of things. Abbott is committed to their strategy, Dexcom to theirs and the CGM market continues to grow.