MEDTECH: Shares Soar on Upbeat Q3 Earnings Report
Dexcom scored big in October in more ways than one.
In addition to posting 18% revenue growth in Q3 over Q3 2021, the San Diego-based maker of continuous glucose monitoring (CGM) devices announced last month the launch of Dexcom U – a unique program highlighting college athletes with Type 1 diabetes.
The program will offer 14 competitors a platform to share their story, act as role models to other aspiring athletes and receive mentorship and support from their Dexcom U teammates, professional athletes and figures who understand the challenges facing athletes with diabetes.
“We are going to create content with them centered around how they train, how they game prep, how they use their Dexcom CGM to thrive in their sport,” said Anne Santoro, vice president of global customer experience at Dexcom. “It really is intended to give them this broader platform to connect with the community, to connect with young athletes, to connect with parents of those athletes and beyond.”
Dexcom U is a first of its kind NIL (name, image, likeness) program, made possible by a 2021 Supreme Court ruling that allowed for NCAA athletes to take advantage of education-related benefits offered by sponsors.
“In response to the Supreme Court NIL decision, we saw this wave of brands signing college athletes and we thought there was an idea there for us to set out and create a unique program that might make sense for athletes with diabetes,” Santoro said.
Part of creating the unique program was commissioning a survey on the effects a diabetes diagnosis has on young athletes. The survey found that 43% of adults with Type 1 diabetes felt like quitting sports and physical activities because of their diagnosis; 20% followed through with quitting sports; and 50% of adults with Type 1 diabetes felt that their coaches, trainers and teachers treated them differently after learning about their diagnosis.
The survey also found that 48% of adults with Type 1 diabetes and parents to children with diabetes believe that being aware of a professional or top, amateur athlete or celebrity with Type 1 diabetes would be very beneficial for a newly diagnosed individual.
“We’ve heard from parents with younger kids with Type 1. It’s often a lonely and very difficult disease and they just love how it gives their kids a role model in a sense and somebody to look up to and say, ‘Hey I don’t have to quit my sports, I can continue and thrive,’” Santoro said.
To launch Dexcom U, the company partnered with Adam Schefter, an ESPN Senior NFL Insider and diabetes advocate.
“For many, having diabetes used to mean giving up on your hopes and dreams,” Schefter said. “I’ve had a front-row seat to diabetes since my wife Sharri was diagnosed in 2002, and I see the hurdles that people with diabetes overcome daily, but also how the advances in diabetes care, like Dexcom CGM, have unlocked a world of possibilities for her and many others.”
The inaugural athletes in Dexcom U were chosen from the company’s Dexcom Warriors program – a global community of more than 20,000 people with diabetes who share their stories about living with diabetes and how they overcome the disease to thrive. Santoro said Dexcom U will add new athletes from the Warrior program each year as older ones graduate.
The Dexcom U inaugural roster includes 14 student athletes from across the nation and represent a wide range of sports, from swimming and diving to cheerleading and lacrosse, wrestling to football, baseball and soccer.
“My Dexcom CGM is a total game-changer, allowing me to compete at the highest level knowing my diabetes is der control, and giving me, my coaches and teammates peace of mind,” said Zyian Welcher, cheerleader at Jackson State University. “I know first-hand that having role models who know exactly what it’s like to live with diabetes can be a tremendous asset, so it’s a great privilege to be part of Dexcom U and hopefully be that role model for someone else.”
In addition to highlighting role models for young athletes with diabetes, Dexcom highlighted its own role model status as a leading company on the NASDAQ with its Q3 report, released on Oct. 27.
In the third quarter of 202, Dexcom’s worldwide revenue grew 18% to $769.6 million, up from $650.2 million in the third quarter of 2021. The company’s gross profit totaled $494.2 million or 64.2% of revenue for the third quarter of 2022, compared to $446.9 million or 68.7% of revenue in the third quarter of 2021.
“In the third quarter, Dexcom executed on a number of key initiatives, which included the launch of G7 in five countries,” said Kevin Sayer, Dexcom’s chairman, president and CEO. “With the international roll-out of G7, strong momentum in our U.S. business, and ongoing efforts to broaden global access, we are well positioned for a strong conclusion to the year.”
Investors immediately reacted positively to the Dexcom (NASDAQ: DXCM) report and sent the price per share up around 17% from roughly $100 per share to trade at roughly $120 per share in the days after the report was released.
The company listed several key highlights from this year that contributed to its success, including the international roll-out of the new Dexcom G7 device with launches in the United Kingdom, Ireland, Germany, Austria, and Hong Kong; the inclusion of Dexcom ONE on the NHS England, Wales, Scotland, and Northern Ireland drug tariffs, significantly expanding reimbursed access to real-time CGM in these markets; and an accelerated share repurchase program.
Santoro said Dexcom still has “a lot of great things” coming at the end of this year and early next year, including FDA approval of its G7 CGM for U.S. patients.
For more information about Dexcom U, visit dexcom.com/dexcomu
Dexcom
Founded: 1999
CEO: Kevin Sayer
Headquarters: San Diego
Business: Continuous glucose monitoring devices
Stock: DXCM (NASDAQ)
Revenue: $2.45 billion (FY2021)
Website: www.dexcom.com
Notable: Dexcom U is the first-ever NIL program designed to spotlight college athletes with diabetes.
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