Even though competition in the Continuous Glucose Monitoring (CGM) market is growing, DexCom continues to have momentum. The San Diego, CA-based company beat out 3Q18 expectations.
Revenue for the quarter came in at $266.7 million vs. the consensus estimate of $241.3 million. The company said there was an increase of revenue by 44% in 3Q18, up from the $184.6 million in revenue earned in 3Q17. DexCom said it now expects to have sales of $975 million, which are up from the prior expectation of $925 million. Wall Street consensus was $930.83.
DexCom has been facing increasing competition lately as its chief rival, Senseonics Holdings, scored a significant nod from FDA for the Eversense CGM. In 2017, DexCom received what some analyst thought was a stunning blow, when Abbott Laboratories received FDA approval for the Freestyle Libre Glucose Monitoring System. During that time, shares of DexCom dropped more than 36%.
Despite the competition, DexCom has continued to move forward and has even taken part in the M&A fever sweeping medtech this year. In August, DexCom picked up Charlottesville, VA-based TypeZero for an undisclosed sum.
“The team and [TypeZero’s] technology align well with our strategy,” Steven Robert Pacelli, executive Vp of Strategy and Corporate Development at DexCom, said according to a transcript from Seeking Alpha. “Specifically, the inControl closed-loop algorithm provides DexCom with that another critical component in an automated delivery system. In addition, TypeZero will advance our decision support roadmap, which includes both our core intensive business and other non-intensive programs. The TypeZero acquisition was catalyzed in part by the FDA's iCGM classification for G6, which we believe will help bring a greater number of insulin delivery solutions integrated with DexCom's CGM platform to market over the next couple of years.”