Dexcom CEO Kevin Sayer was positively beaming as he stood in front of a large audience gathered to hear his presentation at the annual J.P. Morgan Healthcare Conference in San Francisco on Monday.
Fresh off of pre-announcing fourth quarter results in which executives expects blow-out results — read unaudited revenue to increase more than 50 percent in the fourth quarter compared with the same period last year with annual 2018 revenue predicted to hit more than $1 billion for the very first time — Sayer was smiling from ear to ear.
With the Rise of AI, What IP Disputes in Healthcare Are Likely to Emerge?
Munck Wilson Mandala Partner Greg Howison shared his perspective on some of the legal ramifications around AI, IP, connected devices and the data they generate, in response to emailed questions.
“I can’t tell you how many things have to go right to make that happen, but a lot of them did,” he told the audience.
Later, in the breakout session with analysts and investors, Dexcom executives painted a picture of strong adoption of its G6 continuous glucose monitoring (CGM) system, reimbursement and access challenges and more analysis of competitors in the market. The latter includes Medtronic a — which re-introduced a standalone CGM back in the market in April after previously pulling it a few years ago — Abbott, which has made strides with its Freestyle Libre product and Senseonics, with its Eversense 90-day temporarily implantable CGM device.
A CGM system includes an implantable sensor that is worn round the clock and monitors blood glucose levels. They are typically worn in conjunction with an insulin pump that can delivers insulin when needed – and are mostly worn by type 1 diabetes patients. Traditionally CGM sensors need to be routinely calibrated with a fingerstick poke using blood glucose meters to ensure accuracy. Dexcom’s G6 system is the only CGM device on the market that has an FDA labeling that allows it to say that it doesn’t need fingerstick calibrations with a blood glucose meter. Freestyle Libre also doesn’t require fingerstick calibrations but it is a flash glucose monitoring system and not really a CGM device.
In response to a question about Medtronic and Abbott, comments from Steven Pacelli, executive vice president of strategy and corporate development at Dexcom, implied that the Irish device maker is no threat at all.
A Personalized Approach to Medication Nonadherence
At the Abarca Forward conference earlier this year, George Van Antwerp, managing director at Deloitte, discussed how social determinants of health and a personalized member experience can improve medication adherence and health outcomes.
“We honestly don’t see much of a standalone Medtronic presence in the CGM market, ” Pacelli declared.
Omar Ishrak, Medtronic’s CEO, didn’t exactly dispute its heft as a competitive threat to Dexcom in a brief interview after his Q&A with investors at JPM.
“Well, they are bigger than us and I’d like to see where we go,” Ishrak said. “They’ve had that focus [on CGM].”
Ishrak added while Medtronic has re-introduced a standalone CGM in the market it can’t be compared to the old device that was pulled from the market a few years ago.
“This has Sugar.IQ,” he said of the companion app with the standalone Guardian Connect CGM that leverages artificial intelligence to make sure Type 1 diabetes patients spend more time in range among other things. “That makes a big difference. It’s a big market and there’s a lot of fish in the water.”
In fact one other fish in the water that Dexcom is certainly paying close attention to is Abbott and its Freestyle Libre product. Pacelli said that because of reimbursement challenges, patients can’t easily access the G6 system and that it’s easier to get a Libre today, which is one reason for why Dexcom is trying to make inroads in the world of pharmacy.
“Libre is obviously making tons of noise … and they are a great competitor,” he said noting however that once patients understand the true value of a CGM they would choose Dexcom’s G6.
Sayer added further color to Pacelli’s comments noting that the Libre is not a CGM in the true sense and in some places isn’t even called that. He said that patients typically end up getting the G6 in the end even after using Libre.
“Something like 80 percent of our new patients come from Libre,” he said. These are vastly different products. We do vastly different things.”
Still, Sayer repeatedly declined to say how many patients are currently using the G6 system.
Photo: Ja_inter, Getty Images
