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Dexcom's Savvy Business Move into New Geographies

Image courtesy of Dexcom Photo of Dexcom ONE CGM system and app
The Dexcom One will be available to diabetes patients in the UK in May. Here's what you should know about the new continuous glucose monitoring system.

There's been a lot of hype this year about Dexcom's G7 continuous glucose monitoring (CGM) system – and for good reason. But the excitement around the recent CE mark and the anticipated FDA approval shouldn't overshadow the significance of the company's other new offering: the Dexcom One.

The company is getting ready to launch the Dexcom One in the United Kingdom in May. While it doesn't have all the bells and whistles that the G7 offers, the Dexcom One is intended to be a more affordable and accessible option for people with diabetes. It also represents a very intentional business move for Dexcom.

The new CGM gives the San Diego, CA-based company a way to expand into geographies where it doesn't already have infrastructure or distribution partnerships in place, and where there may not be reimbursement or where reimbursement would be difficult, CEO Kevin Sayer explained during Dexcom's fourth-quarter earnings call in February.

A few countries already have access to the device, and two of those countries have even put standards in place for reimbursement.

"Our results in our four initial countries have been outstanding. And so, we'll have other new geographies up over the course of the year like that," Sayer said. "They will not have major contributions to our revenue, but they do expand our footprint and do position us ultimately to get reimbursement in those countries."

Sayer said the company is looking at a two-product strategy in some geographies it can support its G-series CGM products for patients who need all of the share and follow function, as well as the Dexcom One for patients who don't need all of those features.

"And in those geographies, we believe Dexcom One is an excellent product offering that could round out our portfolio very nicely," he said.

The Dexcom One is currently in review to be added to drug tariffs across the UK regions.

"The upcoming launch of Dexcom One represents a significant step forward in diabetes management and inclusion on the drug tariff would ensure that more people benefit from this life changing technology," said Karen Baxter, vice president of Dexcom's businesses in the UK and Ireland, Benelus, France, and Spain.

Should the device be added to the NHS drug tariff, the company will implement an educational and support program for people with diabetes and healthcare professionals to help the diabetes community benefit as quickly as possible from reimbursement and wider availability of the company's continuous glucose monitoring technology, Baxter said.

The new CGM product shares the same sensing hardware as the G6 and is suitable for people with Type 1 or Type 2 diabetes using insulin. The G6 will continue to be available through existing channels to people who require additional support to manage diabetes, for example people who are hypo unaware, children, and those using connected devices.

This news comes as the National Institute for Health and Care Excellence (NICE) announced new guidance for adults and children managing Type 1 diabetes. NICE now recommends that adults with Type 1 diabetes be offered a choice of glucose sensors, including rt-CGM, based on their individual preferences, needs, characteristics, and the functionality of the devices available. The guidance also recommends that all children with Type 1 diabetes be offered rt-CGM, together with education for both them and their families and/or care givers on how to use their device.

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