Developer of continuous glucose monitoring systems, DexCom Inc. DXCM recently announced that its G4 PLATINUM Continuous Glucose Monitoring (CGM) System with Share app will be available on Apple Watch. Technology giant Apple Inc.’s (AAPL) much anticipated device, Apple Watch, is set to hit the stores on Apr 24.
Following the announcement, shares of DexCom climbed as much as 5.4% to touch an intra-day high of $68.49 on Apr 10, pulling back to close the day at $67.89. We note that shares of this San Diego, CA-based company have gained nearly 23% so far this year.
Notably, DexCom CGM and its mobile apps – Share 2 and Follow – are already approved by the FDA and allow both users and followers to view glucose data directly on their Apple iPhone or iPod Touch.
The “Share” and “Follower” apps, which are currently available on the Apple App Store at no additional charge will also be available for free download from the Apple Watch App Store starting Apr 24.
With the availability of CGM apps on the Apple Watch, caregivers and people with diabetes will have the opportunity to track their glucose levels and trends in a convenient and discreet manner right from their wrist. Additionally, patients or “Sharers” will be allowed to invite up to five people to view their glucose information and send an alert when the sharer’s glucose levels are outside the normal range.
We feel that DexCom is making significant efforts to provide its patients with access to the most current technology to better manage diabetes. As technology is becoming a more relevant and indispensable part of people’s lives, we feel that such business opportunities will go a long way in enhancing the visibility of DexCom’s products and services.
Moreover, strategic deals with companies like Apple, which have a vast global presence, will boost DexCom’s business scale massively. By expanding its range of solutions and services, DexCom will not only improve its international presence but will also enhance its top-line growth opportunities.
Stocks to Consider
Currently, DexCom carries a Zacks Rank #3 (Hold). Better-ranked stocks in the medical instruments industry include Inogen INGN, Abiomed ABMD and Fluidigm Corp FLDM. While Inogen sports a Zacks Rank #1 (Strong Buy), both Abiomed and Fluidigm carry a Zacks Rank #2 (Buy).
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