Dexcom (DXCM) 2024 Wells Fargo Healthcare Conference summary

Market outlook and growth opportunities

• CGM market expected to maintain high growth, with significant expansion potential in Type 2 diabetes and international markets.

• U.S. Type 1 penetration is 60–65%, Type 2 intensive insulin users at 50–55%, and basal users just starting at 20–25%.

• Stelo product targets non-intensive Type 2 diabetes, opening new market segments.

• International growth expected in mid to upper teens, with reimbursement expansions and improved performance in Japan.

• No structural business issues identified; execution is the main focus for future growth.

Competitive landscape and execution challenges

• Recent sales force expansion caused disruption, confusion, and weakened DME channel relationships.

• Loss of share in DME channel attributed to strained distributor relationships and channel neutrality missteps.

• Abbott has gained share among Type 2 basal Medicare patients; efforts underway to improve presence in this segment.

• Pricing in DME channel is similar to competitors; volume and channel neutrality are key distributor concerns.

• Leadership is intensifying focus on execution, retraining, and direct engagement with distributors.

Product innovation and pipeline

• Confident in 2025 launch of 15-day G7 sensor, pending FDA approval and subsequent rollout.

• Stelo launched as a 15-day, over-the-counter CGM for non-intensive Type 2 and wellness users.

• Stelo app to receive frequent updates, including AI features and expanded partnerships for health data integration.

• Positive early feedback on Stelo's usability, distribution, and impact on user behavior.

• Partnerships anticipated with health, nutrition, and activity monitoring apps to leverage glucose data.