Digital Health And Reimbursement Issues Divide Glucose Monitoring Market

28 Feb 2014

Innovative technology from companies such as Google offers the promise of new digital health options in the glucose monitoring market, while drastic reimbursement cuts affecting existing meters and supplies in the US are taking a noticeable toll on the major players already operating in the field. These competing factors have created a dichotomy characterized by opportunity on one side and uncertainly on the other, and that is forcing some competitors to re-think their business strategies.

Although there may be some consolation in knowing that other segments of the device industry are experiencing similar challenges, the big players in the blood glucose meter (BGM) market are facing market pressures that are causing them to re-examine their businesses. Dramatic cuts in reimbursement are taking a heavy toll in this field, while the products themselves, still very necessary for a growing number of diabetics, are increasingly viewed as commodity items. The good news is the fundamentals of this market remain strong, with the total number of diabetics worldwide continuing to climb. As a result, this space is still a strong lure for innovative companies eager to bring new technology – including digital health solutions from companies like Google Inc. – to the marketplace and perhaps take advantage of internal changes affecting competition.

The dichotomy of the market is certainly noticeable as larger players worry about losing revenue while smaller companies are still...