Dexcom CEO Kevin Sayer touted the company’s recent efforts to expand coverage of CGMs for people with Type 2 diabetes. On a May 1 earnings call, the CEO told investors that all three major U.S. pharmacy benefit managers now cover the company’s G7 glucose monitor for anyone with diabetes. Dexcom expects to have coverage for nearly 6 million people with Type 2 diabetes who don’t take insulin by the end of the year.
“While this still represents only a portion of this 25 million-person population in the U.S., we often see smaller and customized plans quickly follow suit of the larger PBM formularies,” Sayer said.
Dexcom will seek coverage from Medicare for people with diabetes who don’t take insulin. The company is working to gather evidence from a randomized controlled trial to submit a request to the Centers for Medicare and Medicaid Services, Sayer said.
Wolfe Research analyst Mike Polark on the earnings call noted comments by Health and Human Services Secretary Robert F. Kennedy Jr. supporting CGMs. Food and Drug Administration Commissioner Martin Makary has also suggested making the devices more widely available.
“We’re very pleased with the comments of the administration,” Sayer said, adding that the company thinks its devices “fit the Make America Healthy agenda very nicely.”
Dexcom reported revenue of $1.04 billion in the first quarter, a 12% increase year over year.
Tandem prepares for new product launches
Tandem is seeking Europe’s CE mark for its newer, smaller Mobi insulin pump, CEO John Sheridan said in an April 30 earnings call.
Tandem received FDA clearance for the device in 2023. The company plans to launch Mobi outside of the U.S. with multiple sensor integrations by the year’s end, Sheridan said.
In February, Tandem received an expanded FDA indication for its Control-IQ+ algorithm for Type 2 diabetes. The algorithm pairs data from glucose monitors with the company’s insulin pumps for automated dosing. Tandem hopes to launch the newer version of that algorithm internationally by the end of the year, pending regulatory approval, Sheridan said.
The CEO also provided an update on Tandem’s efforts to develop an insulin patch pump. The company is working on a tubeless feature for its Mobi pump that is now in verification testing and manufacturing buildout, Sheridan said. Meanwhile, the company has moved development of the Sigi patch pump that it acquired in 2022 to San Diego.
Insulet gives early update on Type 2 expansion
Insulet, which received an expanded indication last year for its Omnipod 5 patch pump, said people with Type 2 diabetes represent a growing portion of new patients.
Eric Benjamin, chief product and customer experience officer, told investors on May 8 that people with Type 2 diabetes made up more than 30% of new starts in the first quarter, an increase from 25% in the fourth quarter.
The company grew revenue by nearly 29% to $569 million in the first quarter, compared to the year-ago period, and named longtime medtech executive Ashley McEvoy as CEO.
Insulet estimated in February that the Type 2 indication expands the total addressable market for its patch pumps in the U.S. to more than 5.5 million people with Type 2 diabetes who take insulin. About 2.5 million of those people take multiple daily injections of insulin. Insulet estimated the market is less than 5% penetrated. Benjamin expects the company could double or triple that number, telling investors, “Right now, we're making that market.”
