02 May 2020
Posted in Medical Devices
Dexcom expected to hold position as CGM market leader after exceeding expectations with Q1 results
Following the announcement that Dexcom’s Q1 2020 revenue increased by 44% year-over-year;
Aliyah Farouk, Medical Device Analyst at GlobalData, a leading data and analytics company, offers her view:
“GlobalData expects Dexcom to retain its position as the market leader for continuous glucose monitoring (CGM) systems following its strong Q1 results. Dexcom’s surge in revenue was mainly driven by the shift to telemedicine as a result of COVID-19. GlobalData forecasts the CGM market will reach $1.3B by 2028, growing at a compound annual growth rate (CAGR) of 5.3%.
“In addition to a record number of new users utilizing its CGM technology, Dexcom also held onto its current customer pool with a patient assistance program designed to aid U.S. customers who have lost insurance due to COVID-19. Furthermore, initiatives put forward by the Food and Drug Administration (FDA) allowing CGM systems to be used in hospitals and healthcare facilities to support COVID-19 care further contributed to Dexcom’s outstanding Q1 revenue.
“Advances in technology have improved the accuracy and reliability of CGM performance, reducing cost and the physical burden imposed on the patient. The use of CGM systems is therefore increasing and COVID-19 has opened new opportunities for the systems to be used in new settings. Nevertheless, the current CGM market has limited players therefore Dexcom is in a great position to grow its market share and strengthen its leadership.”