New technologies for diabetes treatment are becoming essential for those who suffer from the disease, according to J.P. Morgan, and that could make companies such as Dexcom compelling investment opportunities.
“Treatment is shifting towards integrated pumps where the CGM dictates insulin dosing, and in our view the CGM is the much more valuable component of that equation than the pump,” Marcus explained. “We think the Street is being too conservative on the near-term sustainability of Dexcom’s hardware business (transmitters and receivers) and assuming a significant headwind to both new patient adds and base business patient attrition.”
Dexcom’s stock is up more than 62 percent so far this year. Shares extended their 2018 gains Friday, climbing nearly 4 percent.
“One of the hidden assets of Dexcom is this investment we’ve made in technology,” chief executive Kevin Sayer told “Mad Money” host Jim Cramer in November. “Our system offers features that competitors don’t. We connect to phones. We share data with people who watch patients. We offer performance and accuracy that others don’t.”