DexCom, Inc. DXCM recently unveiled new data for its upcoming G7 15-day continuous glucose monitoring (CGM) sensor at the Advanced Technologies & Treatments for Diabetes (ATTD) conference 2025. With an impressive mean absolute relative difference (MARD) of 8.0%, this CGM is poised to be the most accurate in the market. Additionally, the company introduced enhanced integration capabilities, solidifying its position as the most connected CGM brand globally.
Likely Trend of DXCM Stock Following the News
Shares of DXCM have gained 0.2% since the promising data readout on G7 sensor. The company’s shares have lost 5.4% against the industry’s 1.9% growth so far this year. The S&P 500 Index declined 2.7% in the same period.
The potential launch of the Dexcom G7 15-day sensor will mark a significant advancement in diabetes management. Its superior accuracy, extended wear time and expanded connectivity underscore its potential to revolutionize glucose monitoring, particularly for individuals with Type 2 diabetes. As regulatory approvals progress, Dexcom continues to lead the CGM market by driving innovation, expanding insurance coverage and advocating for broader access to diabetes technology. DXCM stock is likely to gain following the potential approval.
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The Significance of the 15-Day G7 Sensor for Dexcom
The 15-day wear duration represents a significant improvement over previous versions (10 days), offering users a longer lifespan per sensor, thereby reducing the frequency of replacements and potentially lowering overall costs. This update positions Dexcom competitively against other CGM providers by improving user convenience and economic viability while maintaining superior accuracy.
Dexcom has submitted the 15-day G7 sensor to the FDA for clearance and anticipates approval by the second quarter of 2025. Depending on regulatory feedback, the company aims to launch the sensor in the latter half of the year. The sensor will first be introduced in the U.S. market, with expansion to other regions following successful regulatory approvals.
Healthcare Professionals Favor CGMs for Type 2 Diabetes
Recent survey findings indicate that 52% of healthcare professionals (HCPs) believe that CGMs and diabetes education will play a more crucial role than new medications in managing Type 2 diabetes over the next decade. Additionally, 96% of HCPs agree that individuals using multiple daily insulin injections should have access to CGMs, while 86% support CGM use for basal insulin users. These insights highlight a growing shift toward technology-driven diabetes management.
Dexcom’s report reveals increasing recognition of CGMs among physicians, with many advocating for their standardization in diabetes care. However, factors such as funding constraints and restrictive eligibility criteria remain challenges to widespread adoption. Efforts to enhance education and policy advocacy could drive further acceptance and accessibility.
Insurance coverage for CGMs in the United States has steadily improved, particularly for intensive insulin users. Private insurers are beginning to extend coverage to non-insulin users, a crucial step in broadening access. However, Medicare still restricts CGM coverage to insulin users, though continued advocacy efforts may lead to policy changes in the near future.
G7 Sensor Compatible Devices on the Rise
The G7 sensor can now be integrated with Omnipod 5 Automated Insulin Delivery System, NovoPen 6, and NovoPen Echo Plus, expanding its utility. Dexcom also remains the only CGM provider offering data-sharing capabilities via the Follow app, enabling remote glucose monitoring for caregivers.
DXCM’s Zacks Rank & Key Picks
Currently, DXCM carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Cardinal Health, Inc. CAH, Cencora, Inc. COR and Boston Scientific Corporation BSX.
Cardinal Health, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 9.5%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cardinal Health’s shares have gained 12.2% compared with the industry’s 1.7% growth so far this year.
Cencora, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 12.1%. COR’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 4.9%.
Cencora has gained 19.5% compared to the industry’s 6% decline year to date.
Boston Scientific, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13.3%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.3%.
Boston Scientific’s shares have rallied 15.4% compared with the industry’s 7.2% growth so far this year.
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