Dexcom perfectly timed a series of announcements with the start of this year’s annual Advanced Technologies & Treatments for Diabetes conference, held in Florence, Italy.
On 5 March, the company announced that the US Food and Drug Administration cleared its Stelo blood glucose monitor (CGM), the first of its kind to be sold over the counter
The Street Expects Stelo To Be A Big Hit
Dexcom previously projected Stelo will be worth about $40m in revenue this year and reach a $100m "run rate" by the end of the year.
"We think Dexcom can potentially exceed this target due to the broader over-the-counter access," BTIG analyst Marie Thibault wrote in a 6 March note.
"This is an underappreciated opportunity given how large the non-insulin using type 2 patient pool is relative to the type 1 diabetes and type 2 diabetes insulin-using population."
Initially, users will have to pay for Stelo out-of-pocket, but analysts expect the company will eventually secure third-party reimbursement for CGM in type 2 diabetics not using insulin
