Friday , October 22 2021

Why did DexCom stock jump today?



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What happened

<p class = "canvas-atom screen text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Actions of the DexCom (NASDAQ: DXCM)& nbsp; jumped 9.9% on Monday, after rising more than 12% earlier in the day. The good gain seems to be related to some factors. "Data-reactid =" 12 "> DexCom (NASDAQ: DXCM) rose 9.9% on Monday, after rising more than 12% earlier in the day. The good gain seems to be related to some factors.

<p class = "canvas-atom screen text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "One is the continuous impulse of Medtronic& # 39; s (NYSE: MDT) announced on Friday that it will develop insulin pumps that will be interoperable with the DexCom G6 (CGM) continuous glucose monitoring system. And over the weekend, & nbsp;Tandem Diabetes (NASDAQ: TNDM) presented highly anticipated results from the International Diabetes Closed Loop (iDCL) study of the DexCom G6 insulin pump and Tandem T: Slim X2 at the meeting of the American Diabetes Association (ADA). "data-reactid =" 13 "> One is continued momentum Medtronic& # 39; s (NYSE: MDT) announced on Friday that it will develop insulin pumps that will be interoperable with the DexCom G6 continuous glucose monitoring system (CGM). And at the weekend Tandem Diabetes (NASDAQ: TNDM) presented highly anticipated results from the DexCom G6 International Diabetes Closed Loop (iDCL) study and the Tandem T: Slim X2 insulin pump at the American Diabetes Association (ADA) meeting.

And

Currently, the CGM system integrates with the Tandem T: Slim X2 insulin pump in what is called a "closed circuit" system, where CGM monitors glucose levels and allows the pump to know when to administer insulin. Medtronic's decision to launch insulin pumps that are interoperable with the G6 system should expand the potential market for DexCom.

DexCom G6 Continuous Glucose Monitoring System

The DexCom G6 continuous glucose monitoring system. Image Source: DexCom.

The tandem presentation of data from the iDCL study was also good news for DexCom. This was the first large-scale study of a closed loop system that included a dedicated control group.

<p class = "canvas-atom screen text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In The DexCom D1 teleconference in MaySteve Pacelli, executive vice president of enterprise strategy and development, said that this data "will likely be the highlight" for DexCom at the ADA meeting. And it was really a highlight. Probably the most impressive result of the iDCL study was that the time that patients were in an acceptable range for glucose levels was 76% for those who used the closed loop system compared to only 59% for the patients in the group control. At the DexCom D1 conference call in May, Steve Pacelli, executive vice president of the company's strategy for business development, said that these data "would probably be the highlight" for DexCom at the ADA meeting. Probably the most impressive result of the iDCL study was that the time that patients were in an acceptable range for glucose levels was 76% for those who used the closed loop system, compared with only 59% for patients in the group control.

The popularity of the G6 CGM system is a big reason why DexCom shares have soared nearly 50% in the last 12 months.

What now

DexCom should have more good news for its G6 system later this year. The company plans to launch new features this fall. He expects to launch the G6 CGM with Medicare later this year.

But the G6 will be the great story for DexCom for a limited time. The company is working on its state-of-the-art G7 system and plans to launch the new CGM in late 2020 or early 2021.

<p class = "canvas-atom screen text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " More of the heterogeneous fool "data-reactid =" 34 "> More of the heterogeneous fool

<p class = "canvas-atom screen text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Keith Speights has no position in any of the aforementioned actions. Motley Fool has no position in any of the above actions. The Motley Fool has a disclosure policy."data-reactid =" 42 ">Keith Speights has no position on any of the aforementioned actions. Motley Fool has no position in any of the above actions. Motley Fool has a disclosure policy.

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