In a filing with the U.S. Securities and Exchange Commission (SEC), DexCom, Inc. (DXCM) recently stated that it expects unaudited product revenues of approximately $6.6 million for the fourth quarter of 2009. This represents a 43% sequential increase from the product revenues reported by the company in the third quarter of 2009.
 
DexCom reported that it sold approximately 2,800 starter kits during the fourth quarter of 2009, representing a sequential increase of about 31% in starter kit sales. Sensor revenues were up about 50% on a sequential basis.
 
DexCom is a medical device company focused on the design, development and commercialization of continuous glucose monitoring systems for ambulatory use by people with diabetes and by healthcare providers for the treatment of diabetic and non-diabetic patients.
 
According to the Centers for Disease Control and Prevention (CDC), diabetes was the seventh leading cause of death in the United States in 2007. The diabetes market is large and growing – prevalence of the disease is increasing as a result of the aging population, inappropriate diets and increasingly sedentary lifestyles.
 
With the frequent monitoring of blood glucose levels being an important component of effective diabetes management, we believe that the glucose monitoring market represents significant commercial opportunity for DexCom. Increased awareness and acceptance of the need for continuous glucose monitoring, more favorable reimbursement coverage, and data supporting blood glucose monitoring should help drive sales for DexCom’s products.
 
However, we note that competition in the market is fierce with big names like Johnson & Johnson (JNJ), Medtronic (MDT), and Abbott (ABT) accounting for a major part of self-monitored glucose testing systems sales. We currently have a Neutral recommendation on DexCom.
Read the full analyst report on “DXCM”
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Read the full analyst report on “MDT”
Read the full analyst report on “ABT”
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