Investors continue to dump shares of DexCom, Inc. (NASDAQ:DXCM) following the news that competitor Abbott Laboratories (NYSE:ABT) received FDA approval for its FreeStyle Libre flash glucose monitoring (FGM) system for use in diabetic patients 18 years of age or older. Libre can be worn for up to 10 days (post a 12-hour blinded start-up period), requires no patient calibrations, and importantly, can be used to make insulin dosing decisions. For Dexcom’s continuous glucose monitoring (CGM), the approval introduces low priced competition into the MDI segment of the population where Dexcom was previously the sole competitor.
As of this writing, DexCom shares are falling nearly 36% to $43.11.
“Today, we are celebrating a breakthrough moment for people with diabetes in the U.S.—an end to the worry and hassles associated with routine finger sticks which have been the standard of glucose testing for more than 40 years,” said Jared Watkin, senior vice president, Diabetes Care, Abbott. “At Abbott, we believe that FreeStyle Libre will transform diabetes management and we’re proud to be at the forefront of innovation that empowers people to take control of their health to live their best lives.”
On the ratings front, DXCM has been the subject of a number of recent research reports. In a report released today, Raymond James analyst Jayson Bedford downgraded DXCM to Hold. Separately, Piper Jaffray’s Matthew O’Brien maintained a Buy rating on the stock and has a price target of $87.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jayson Bedford and Matthew O’Brien have a yearly average return of 22.2% and 21.1% respectively. Bedford has a success rate of 81% and is ranked #81 out of 4669 analysts, while O’Brien has a success rate of 65% and is ranked #80.
Overall, 4 research analysts have assigned a Hold rating and 10 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $78.67 which is 64.3% above where the stock opened today.
DexCom is a medical device manufacturing company, which engages in the design, development, and commercialization of continuous glucose monitoring systems for ambulatory use by people with diabetes. Its products include Dexcom G4 PLATINUM System, Dexcom studio and Mobile apps.