Developer of continuous glucose monitoring systems, DexCom, Inc. (DXCM), recently received the FDA approval for its Dexcom G4 PLATINUM Continuous Glucose Monitoring System with Share.
The Dexcom Share receiver uses a secure wireless connection between a patient’s receiver and an app on the patient’s smartphone. With the help of this connection, which will be established via Bluetooth Low Energy (BLE), the receiver will be able to transfer glucose information to apps on the mobile devices of up to five recipients.
The recipients, or followers, can then supervise a patient’s glucose information and get alert notifications from anywhere via their Apple (AAPL) iPhone or iPod touch. The “Share” and “Follower” apps will be available on the Apple App Store at no additional charge. The company plans to extend this service to the Android platform as well.
DexCom is riding high on the back of a number of FDA approvals received over the past few months. In Nov 2014, FDA approved a new algorithm designed for DexCom’s G4 Platinum Continuous Glucose Monitoring system.
Prior to that, DexCom Share was cleared by the regulator in Oct 2014. We view that the company is making significant progress in extending Continuous Glucose Monitoring to mobile devices, in a bid to enhance customer convenience.
We feel these approvals will benefit DexCom’s long-term prospects. Once the approved products are rolled out in the market, these will help drive significant top-line growth.
Notably, DexCom announced preliminary product revenues for fourth quarter and full year 2014. DexCom anticipates fourth quarter product revenues to surge an impressive 64% on a year-over-year basis to $84 million.
Zacks Rank
Currently, DexCom retains a Zacks Rank #3 (Hold). Better-ranked stocks in the medical instruments industry include Inogen (INGN), Synergetics USA (SURG). Both sport a Zacks Rank #1 (Strong Buy).
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