DexCom (DXCM) G6 CGM System Now Available to TRICARE Members
DexCom, Inc. DXCM recently announced that its G6 continuous glucose monitoring (“CGM”) System will be available to diabetic military members, their families and retirees as a TRICARE brand-name formulary pharmacy benefit. This will be effective from mid-April 2022 and is expected to provide faster and more convenient access to the Dexcom G6 CGM System to TRICARE members.
With the latest availability to a wider patient pool, DexCom is expected to solidify its foothold in the global CGM business.
A Few Words on Dexcom G6 CGM
Dexcom G6 is equipped with a small, wearable sensor and transmitter to continuously measure and send glucose levels wirelessly to a smart device or receiver. This offers patients real-time glucose data without finger pricking. The system also provides customizable alerts and alarms to help avoid potentially dangerous low and high blood sugar events and a function that helps patients to share their glucose data in real time with up to 10 followers.
Significance of the Availability
Once effective, diabetic military TRICARE members will be eligible for Dexcom G6 through the military treatment facility pharmacies at zero copayment, the TRICARE retail pharmacy network or through mail order or home delivery. The pharmacy benefit provides a faster process and more consistent copayments for members. Earlier, Dexcom G6 was available via the TRICARE medical benefit by durable medical equipment suppliers where copayment amounts could vary depending on the plan.
Per management, the pharmacy benefit will enable the diabetic TRICARE beneficiaries to utilize the technology to take better and real-time decisions concerning their health, with little to no out-of-pocket costs.
Industry Prospects
Per a report by Grand View Research, the global CGM device market size was valued at $3,929.7 million in 2019 and is expected to reach $10.4 billion by 2027 at a CAGR of 12.7%. Factors like rising cases of diabetes and increasing adoption of CGM devices are likely to drive the market.
Given the market potential, the latest availability is expected to provide a significant boost to DexCom’s business globally.
Recent Developments
This month, the company announced that the new Dexcom ONE CGM System will be launched in the United Kingdom in May.
Last month, the company received CE Mark (Conformité Européenne) for the Dexcom G7 CGM System for diabetics in Europe aged two years and above, including pregnant women.
The same month, DexCom announced that effective Mar 14, 2022, the Ontario government will provide coverage for the Dexcom G6 CGM System through Ontario’s Assistive Devices Program for people in the province living with type 1 diabetes above the age of 2 years and meeting coverage criteria.
Price Performance
Shares of the company have gained 24.9% in the past year against the industry’s 4.4% fall. The S&P 500 has risen 6.9% in the same time frame.
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Zacks Rank & Key Picks
Currently, DexCom carries a Zacks Rank #3 (Hold).
A few stocks from the broader medical space that investors can consider are AMN Healthcare Services, Inc. AMN, Abiomed, Inc. ABMD and Henry Schein, Inc. HSIC.
AMN Healthcare has an estimated long-term growth rate of 16.2%. AMN’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 20%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has gained 37.3% against the industry’s 57.1% fall over the past year.
Abiomed, carrying a Zacks Rank #2 (Buy), has an estimated long-term growth rate of 20%. ABMD’s earnings surpassed estimates in the trailing four quarters, the average surprise being 9.2%.
Abiomed has lost 9.8% compared with the industry’s 4.4% fall over the past year.
Henry Schein has an estimated long-term growth rate of 11.8%. HSIC’s earnings surpassed estimates in the trailing four quarters, the average surprise being 25.5%. It currently has a Zacks Rank #2.
Henry Schein has gained 29.7% compared with the industry’s 6.2% growth over the past year.
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