Home  »  Analyst Insight   »  What Should Investors Know About The Risks Associa...

What Should Investors Know About The Risks Associated With Dexcom (DXCM) Stock?

Manufacturer DexCom Inc. (DXCM) has long been the sole provider of a continuous glucose ‎level monitoring system. This generated strong sales and rapid stock growth for the company. ‎DexCom, however, has faced serious competition from other suppliers of medical equipment in ‎recent years. How serious are those risks?‎

Today, the G6 device, first launched in 2018, is sold by DexCom. With it, diabetic patients, ‎without finger punctures and test strips, can track their glucose levels in real time. The 10-day, ‎one-time sensor transmits signals every five minutes to mobile devices (tablets, smartphones or ‎smart watches) and can also predict a potential spike in glucose levels, helping user to prevent ‎emergencies. The G6 model specifically describes the criteria that have allowed it to gain FDA ‎approval for use in conjunction with other diabetic products, such as insulin pumps.‎

3 Tiny Stocks Primed to Explode The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.

We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.

Click here for full details and to join for free.


The G6’s high accuracy, as well as the convenience of the display, provided strong revenues and ‎market leadership for DexCom. However, the company had significant rivals a few years ago ‎who could claim a portion of the DexCom business. First of all, we are talking about the glucose ‎monitoring system produced by Abbott Laboratories (ABT) FreeStyle Libre 2. The system has ‎been licensed in Europe since 2018, and has been authorized for sale in the United States since ‎last quarter. In Europe, Abbott is also in the process of releasing FreeStyle Libre 3. In certain ‎ways, such as the length of work, Abbott’s approach is better than DexCom’s. The main benefit ‎of DexCom G6 at this point, however, is the ability to function together with an insulin pump.‎

Nonetheless, serious rivalry pushes DexCom to search for ways to improve the product’s ‎attractiveness. The business expects to launch a new version of its G7 monitor next year. ‎DexCom has not yet announced the features that its G7 will get, but says it will work to develop ‎its solutions technologically.‎

At the same time, the company anticipates price competition, among other items, so that it ‎works to minimize production costs in order to have greater flexibility in decreasing prices ‎while retaining profits. DexCom also tries to strengthen the distribution network, which also ‎gives space for reasonable rates to be handled.‎

The accumulation of user experience is an important benefit of DexCom. In its cloud system, ‎the organization has collected a large amount of data from linked devices, and can use this ‎knowledge to create customized diabetes care plans by analyzing patterns.‎

But the organization will still remain a strong player even if DexCom struggles to retain its ‎leadership position. The demand for treating diabetes is rising rapidly. Most monitors are now ‎focused on type 1 diabetes patients. But, increasingly, businesses are starting to place their ‎devices for type 2 diabetes patients, which is a huge market, and the number of patients ‎worldwide is growing. This means that many companies that manufacture glucose monitors will ‎function on the market successfully.‎

The DexCom Inc. (DXCM) shares were up 1.54% to $354.23 on Tuesday.‎

Leave a Comment

Your email address will not be published. Required fields are marked *

A Lesson to Learn: Yum! Brands Inc. (YUM)

Yum! Brands Inc. (NYSE:YUM) went down by -1.80% from its latest closing price compared to the recent 1-year high of $139.85. The company’s stock price