Dexcom’s international market share gains accelerated in the second quarter, powering the company to 38% sales growth outside the U.S. and enabling it to raise its overall outlook for the full year.
Competing with Abbott for the global diabetes market, Dexcom launched its G7 continuous glucose monitor in six new markets in the quarter while working to improve access in its existing territories. CEO Kevin Sayer named three drivers of the company’s success overseas in a Wednesday conference call,.
“The first is the plan we launched several quarters ago to increase access across the board and make our product more accessible in all these markets,” Sayer said. “Second of all, you can't underestimate the effect of G7. The third piece is the portfolio strategy where we have Dexcom One supporting expansion into geographies where we haven't been before.”
Dexcom grew sales by 21% in the U.S. The performance was fueled by “another record new customer start quarter,” Dexcom CFO Jereme Sylvain said on the call, and “continued momentum in the U.S as our G7 launch gained additional traction.”
Dexcom responded to its second quarter results by raising its revenue growth forecast for the full year to 20% to 22%, up from from 17% to 21%.
“It really comes [from] the strength you're seeing outside the U.S., as well as some of the coverage and access wins we've had in the U.S.,” Sylvain said. “Basal has really now started, with the coverage we've been able to obtain, to fold into the core business.”
Dexcom has established more than 60% commercial coverage in the U.S. of its CGMs for patients who use basal insulin. Basal made “a relatively nominal contribution” to U.S. sales in the second quarter, Sylvain said, but Medicare’s decision to expand coverage came too late to have a big impact. Sylvain expects the basal contribution to start to build over the course of the year.