Yeah, it's a ton. $800 for the device and $35 per sensor. Each sensor lasts 3 days so multiply that by ~120 and you get >$4000. The Medtronic device alone costs $2800, then add in I believe $40 per sensor (but I'mnot sure). Insulin pumps cost around $5000 just for the device. More $$ is spent on Diabetes than any other disease in the world.
0% insurance coverage for the DXCM device... hopefully by 2007.
OMG, Texas believes someone on this board???? I've been telling you that the revenues won't be easy, and Mr. Cooper has pointed out similar items I did. As I said, without reimbursement, it will be difficult to sell this item. Actually, I am surprised by the proposed low cost of the sensor module at $800, but the $35 cost for the actual sensor is consistent with MiniMed and what had been proposed for the Navigator.
There is one advantage that Dexcom does have, that being they won't have to spend the $1-2M that will be required to get the Coding done for reimbursement, since MDT is handling that with the Guardian RT. The question is whether MDT got their application completed in January. If not, it won't be until next January that they can put the code application in (yes, our government only works on a yearly basis).
Now you understand why a buyout will not be instantaneous. Why pay a premium for something that may or may not sell and is 'complimentary' in nature. The big 4 (Roche, JNJ, Bayer, and Abbott) have shown that they are willing to wait for a company to prove itself and pay a premium. Why do you think Abbott paid $1.3B for TheraSense, on $200M in Revenues, but still losing money?