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DXCM

Dexcom shares up as Diabetes Association updates guidelines

investing.com 10/12/2024 - 16:11 PM

DexCom Inc Shares Rise

Investing.com — DexCom Inc (NASDAQ:DXCM) shares increased by over 2% following the American Diabetes Association (ADA) updated guidelines. These guidelines now recommend using continuous glucose monitors (CGMs) for certain adults with type 2 diabetes who are not on insulin.

Analyst Insights

Bank of America has maintained its "buy" rating on Dexcom. The updated 2025 Standards of Care indicate a faster-than-anticipated shift, showcasing the increasing acceptance of CGM technology for wider application. Analysts at BofA mentioned that this change could facilitate insurance coverage for Dexcom’s non-insulin products, including Stelo and Lingo, opening up a significant new market.

Importance of Reimbursement

BofA emphasized, "This is an important step for reimbursement. Reimbursement has historically been the key catalyst for each CGM market," according to an analyst from BofA.

Future Growth Potential

Additionally, BofA noted that Dexcom's upcoming G7 15-day sensor could drive earnings growth in 2025 and 2026. They concluded that the company's current valuation may not fully represent its growth potential.




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