Dexcom’s leadership said Thursday that the company has fixed problems with its flagship glucose monitor after reports of quality issues with its latest G7 sensor.
The diabetes technology company has recently faced a lawsuit and stock volatility. Dexcom’s shares have fallen from $89.06 on July 30, the company’s last earnings readout, to below $60 when the market opened Friday.
Dexcom executives told investors during an earnings call that the rate of device complaints has remained stable, and they expect fewer complaints after fixing a problem with the G7 continuous glucose monitors earlier this year. The company is also working on improving its customer service as it prepares for a full rollout of a 15-day version of the sensor.
The issue, which started at the beginning of the year, involved Dexcom’s G7 CGMs not deploying properly, causing them to not work after people applied the devices. Dexcom has also worked on improvements to Bluetooth connectivity and the CGMs’ adhesive, interim CEO Jake Leach told investors. Leach added that he was confident about the quality of the sensors coming off the company’s manufacturing lines today.
“We are hearing from our prescribers that they had some challenges earlier, in the first half of this year in particular,” Leach said, referring to the deployment problem. “When we saw it, we jumped on it and resolved it. It’s very consistent feedback as I talk to users and prescribers that things have improved dramatically.”
He added that problems can still happen, that users may experience accuracy issues or that a sensor can fall off, which is why the company is investing in its service platform.
CFO Jereme Sylvain addressed a question about whether the problems have prevented new patients from starting on Dexcom’s devices, saying “there’s likely been a bit of an impact” in the third quarter. However, the company continues to see “hundreds of thousands” of new customer starts.
Both executives said complaint rates for the G7 have been stable.
At the beginning of the year, Leach said Dexcom saw an increase in complaints about out-of-the-box failures, but those were offset by decreases in complaints about accuracy and Bluetooth.
As the company has fixed the deployment problem, Leach expects to see overall complaint rates decrease over time.
Type 2 updates
Dexcom executives also provided updates on the company's over-the-counter CGM, Stelo, for people with Type 2 diabetes who don’t take insulin. The company has surpassed $100 million in revenue from Stelo in the first 12 months since the device launched in August 2024.
Dexcom is working on a new feature for people with Type 2 diabetes based on its G7 platform. Called Dexcom Smart Basal, the module is designed to help people titrate basal insulin and will be part of the G7 app.
Leach said Dexcom has submitted the feature to the Food and Drug Administration for review, as well as for Europe’s CE mark.
