DexCom's CGM is the FUTURE.Clearly, that Dec 24 route was the clear buying opportunity, You would've been +40% by now.
Is it too late? I'd say NO.
If you have the ability to invest on this, and of course, have an awareness on all the geopolitical factors. I think this is a win.
If you want to swing, it's also up to you.
Here's the thing
1) Let's be clear, DexCom is the leader on CGM (continuous glucose monitoring). BTW, best presentation on JPM Conference.
2) G6 is being sold to partners like tandem, lily, insulet, and novo, basically eating on their lunch.
FY18 revenue estimate is from $830m to $850m. ($715m the year before). CEO Kevin Sayer expects revenue to exceed $331m
3) Regarding their collaboration with Verily(GOOG), they expect a product with a lower cost;
smaller, longer life, &disposable which benefits those who aren't using CGM yet.
3) The future - There are a lot of people that need to be (and will be) screened, not to mention pre-diabetics.
My take: There's so much room to improve the G6 tech. I'm thinking, insulin delivery system kind of like tandem's t:slim.
That way, they can serve type 2 diabetics.
I like Tandem and I think the collaboration is perfect and I think the Verily product will take the stock higher.
Also, a sensor that goes straight to the Apple Watch $AAPL so the patient doesn't have to carry a phone.
Strategy: Obtain approval to launch G6 globally; Focus on the rollout to Medicare population.
Price Target: Call me crazy but I think DXCM can trade up to Abiomed's level. $320-400. Why?
I think this is a monopoly in CGM, and they can execute globally.
