DexCom, Inc. DXCM recently announced that people living with type 1 and type 2 diabetes age two and above on multiple daily injections of insulin (three or above) or who are dependent on an insulin pump may now become eligible for public coverage of the Dexcom G6 continuous glucose monitoring (CGM) System through Prince Edward Island’s Diabetes Glucose Sensor Program. In fact, Prince Edward Island joins British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Yukon, and the Non-Insured Health Benefits Program (NIHB) in offering publicly funded coverage for Dexcom CGM.
Apart from this, Prince Edward Island is one of the only two government programs (along with BC PharmaCare) to offer public coverage for eligible children and adults having either type 1 or type 2 diabetes. It is noteworthy to mention that the back of the upper arm insertion site is for ages 18 and above.
This announcement is likely to reinforce DexCom’s already strong leadership position in CGM connected solutions space.
More on the news
It is worth mentioning here that the DexCom G6 CGM offers users real-time alerts, which include a predictive Urgent Low Soon warning while alerting the user in advance of hypoglycemia, thereby giving them time to take proper action before it occurs.
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Per management at DexCom, this announcement marks a critical advancement toward the goal of achieving better access to real-time CGM technology for all Canadians living with diabetes. On a daily basis, managing diabetes can pose a challenge, irrespective of an individual’s age. However, through Prince Edward Island’s Diabetes Glucose Sensor Program, eligible people can effectively manage their diabetes more confidently.
Per a report by Grand View Research, the global CGM device market size was valued at $4.7 billion in 2020 and is estimated to witness a CAGR of 10.1% from 2021 to 2028. The growing incidence of diabetes and the increasing geriatric population prone to diabetes are the primary factors driving this market’s growth. Hence, this announcement is well-timed for DexCom.
In April, DexCom announced that the new Dexcom ONE CGM would be introduced in the UK in May. This new system is an easy-to-use real-time CGM (rt-CGM) and is more accessible and affordable for people suffering from diabetes in the country.
In March, the company announced that the Ontario government would offer coverage for the Dexcom G6 CGM System effective Mar 14, 2022. The government is going to offer this coverage through its Assistive Devices Program (ADP) for people in the province living with type one diabetes who are over two years of age and fulfill the coverage criteria.
Shares of the Zacks Rank #3 (Hold) company have lost 24.6% in the past year compared with the industry’s decline of 13.3%.
Stocks to consider
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. AMN, Masimo Corporation MASI and Patterson Companies, Inc. PDCO.
AMN Healthcare surpassed earnings estimates in each of the trailing four quarters, the average surprise being 15.6%. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare’s long-term earnings growth rate is estimated at 1.1%. The company’s earnings yield of 11.4% compares favorably with the industry’s (0.8%).
Masimo beat earnings estimates in each of the trailing four quarters, the average surprise being 4.4%. The company currently carries a Zacks Rank #2 (Buy).
Masimo’s estimated earnings growth rate for second-quarter 2022 is pegged at 22.3%. The company’s earnings yield is 3.8% against the industry’s (8.5%).
Patterson Companies surpassed earnings estimates in three of the trailing four quarters and missed once, the average surprise being 2.7%. The company currently carries a Zacks Rank #2.
Patterson Companies’ long-term earnings growth rate is estimated at 9.9%. The company’s earnings yield of 7.1% compares favorably with the industry’s 4.2%.
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