Revenue growth sucked and earnings missed. I see in his presentation he refers to upstart competitors and he Poo Poos them. If he's NOT concerned, why bring them up...and why dwell on them. He actually tries to be serious when he says wearing a strap, or removing dead skin is worse then sticking a wire in your belly. I've been told, wearing his device for a week can get pretty funky. Also, he brings up, who would want to have a strap around them in the summer. Who wants to wear Dexcoms device either. No one. You do what you have to do. Dexcom has a nice product, but as is often the case, new novel technology comes around. I don't think the guys at MIT are stupid. With no growth and a CEO who feels threatened by competition, why hold this thing.
I'm not sure about the company with the strap. Must be private. I'm pretty sure the other company is Echo. ECTE. They had some very compelling data on a needle free, continuos product which was developed at MIT with the help of Robert Langer, who is a world famous engineer. I think it's like their 7th straight pilot study with better resukts then Dexcom. If you read their literature the reason they are getting better results is because, other then in the arteries, blood lies closer to the surface, which is what they're reading. I've heard that the Dexcom system has some problems because the wire moves around causing data issues. Not to mention, who would want to wear a wired in device that site on your belly, with a wire in your body for a week, when you can remove a non-invasive reader every day...clean the area to remove the adhesive and put a new device on a different spot. I also understand it's cheaper. In reference to the FDA. It's always easier to get a non invasive system approved, compared with an invasive one. Also, hospitals would rather not stick another needle in people if they don't have to. Dexcom's at 700 million. Echo's at 100. Dexcom would have to go to 4.9 billion to create the same returns Echo would achieve if it matched Dexcoms value in a few years. Also, Echo has a drug delivery compment, so it's truly a platform. I'm not saying Dexcom is bad, but to put all of ones eggs in one basket, when new and better technology id always coming along, is foolish. The fact that Gregg brings up these 2 companies, means they are definatly on his radar screen, probably making them worth looking into.