US Diabetes Market Gaining Momentum: 3 Stocks in Focus
Diabetes is one of the most challenging health conditions in the United States. About 1.4 million new cases of diabetes are diagnosed every year in the country, thanks to rise in the geriatric population, urbanization and poor lifestyle practices.
Per Allied Market Research, the global diabetes therapeutics market is estimated to reach a worth of $186,842 million by 2023, at a CAGR of 16%.
Thus, companies involved in the development of medical devices for diabetes are most likely to draw investors’ attention.
Artificial Intelligence — A Mega Trend in Diabetes Care
Digitization has made big data technologies more relevant in healthcare, the diabetes care space being no exception.
Smart apps have made self-management and monitoring of diabetes affordable. These applications can show real-time data on patients’ blood glucose levels on these apps. Consumer fitness brand Fitbit FIT also entered the sapce by a $6-million investment in Sano.
Additionally, MedTech giant Medtronic MDT collaborated with IBM to develop Sugar.IQ, a cognitive mobile personal assistant app that aims to provide real-time actionable glucose insights and predictions for patients with diabetes.
Per Research and Market, the global market for artificial intelligence in diabetes management is expected to see a CAGR of 50.7% between 2017 and 2023.
Continuous Glucose Monitoring (CGM)
Blood glucose monitoring is a way of testing the concentration of glucose in the blood.
Self-monitoring by patients is the easiest and the most widely adopted method of glucose monitoring across the world. This has encouraged companies in the MedTech industry to focus on the development of glucose monitoring devices.
Going by an article of Research and Markets, the blood glucose monitoring devices market is expected to see a CAGR of 8% between 2018 and 2024.
Patients diagnosed with Type I diabetes frequently require insulin injections. The procedure involves use of needles, syringes, insulin pens or insulin pumps. Medtronic’s MiniMed Insulin Pump therapy deserves a special mention here.
Meanwhile, drugs like Metformin and Sulfonylureas are used to treat Type II diabetes.
Research by Market Watch suggests that the global human insulin drugs and devices market will cross a value of $45.36 billion by 2022, at a CAGR of 8%.
Set against this backdrop, let’s take a look at a few companies which are raking in billions by providing quality diabetes care.
Stocks to Watch
We have zeroed in on three stocks, each with a Zacks Rank #3 (Hold). We believe each of these companies can tap into the promising prospects of the diabetes device market. These stocks have also outperformed their respective industries in the past year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Our first pick is Abbott Laboratories ABT. The Illinois-based MedTech giant is dedicated to developing innovative products that make glucose testing easier and more accurate.
The company’s products like Freestyle Libre, Freestyle Navigator II, Freestyle Lite, Freestyle Insulinx can be used by patients for personal glucose monitoring. Abbott has also launched mobile applications like Librelink and Librelinkup. It is encouraging to note that earlier this year, the company announced the availability of FreeStyle LibreLink app in Europe for use on smartphones (both iPhone and Android).
The stock has rallied 31.1% compared with the industry’s 22% rise.
Next on our list is New Jersey-based Becton, Dickinson and Company BDX, also known as BD. The medical technology bigwig’s products are designed to provide effective diabetes care.
BD’s FlowSmart technology enables a new infusion set with a unique design to help reduce unplanned flow interruptions and keep patients’ diabetes management on track. The company also offers a wide array of insulin syringes like BD 1-mL conventional insulin syringes, SafetyGlide 6mm insulin syringe, Safety-Lok insulin syringe. Moreover, BD’s pen needles are compatible with leading diabetes medication pens in the United States. This range includes AutoShield Duo pen needle, Nano 4mm pen needle and Ultra-Fine pen needles.
The stock has gained 31.1% compared with the industry’s increase of 15.8%.
Investors may also keep an eye on DexCom, Inc. DXCM. The California-based medical device company is known for designing, developing and commercializing CGM systems.
The company’s FDA-cleared CGM system — the DexCom G4 Platinum — is significantly boosting the top line. The inbuilt features of G4 Platinum make it the most innovative CGM system in the market. Last year, DexCom announced the FDA approval of the Dexcom G5 mobile app for Android devices.
In fact, the FDA recently granted a De Novo request for the DexCom G6 CGM System. In June, DexCom announced the receipt of CE Mark for its DexCom G6 System for people with diabetes ages two years and above. In August, DexCom acquired TypeZero Technologies, whose inControl diabetes management system is designed to provide personalized diabetes management solutions.
In fact, Tandem Diabetes TNDM plans to launch its new FDA-approved t:slim X2 Insulin Pump with DexCom’s G6 CGM system.
The stock has rallied 162.8% compared with the industry's 25.7% rise.
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Abbott Laboratories (ABT) : Free Stock Analysis Report
Fitbit, Inc. (FIT) : Free Stock Analysis Report
Tandem Diabetes Care, Inc. (TNDM) : Free Stock Analysis Report
Medtronic PLC (MDT) : Free Stock Analysis Report
DexCom, Inc. (DXCM) : Free Stock Analysis Report
Becton, Dickinson and Company (BDX) : Free Stock Analysis Report
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