Got $10,000? I Think DexCom Stock Could Be a Quiet Winner of the GLP‑1 Wars

Many pharmaceutical companies are looking to make and marketplace the present highly fashionable GLP-1 drugs, which assistance dainty diabetes, assistance patients suffer weight, and trim their hazard of a scope of conditions linked to obesity. The drugmakers that pb this marketplace implicit the adjacent decennary could reap important fiscal benefits for themselves and their shareholders.

But what if companies extracurricular of the pharmaceutical manufacture payment arsenic well? One fantabulous campaigner to bash truthful is DexCom (NASDAQ: DXCM). Let's see wherefore this healthcare specializer could beryllium an under-the-radar victor of the GLP-1 boom.

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DexCom is simply a aesculapian instrumentality person that develops and markets continuous glucose monitoring (CGM) systems to way humor glucose levels successful existent time. DexCom is simply a person successful this niche. And portion immoderate investors initially thought the emergence successful popularity of GLP-1s would beryllium atrocious for the company, the other proved true. Some studies person recovered that utilizing CGM devices alongside GLP-1 medicines yields adjacent amended outcomes for patients with diabetes.

Meanwhile, according to DexCom's management, CGM adoption has grown faster among GLP-1 users, arsenic physicians progressively prescribe 1 successful conjunction with the other. In different words, GLP-1 drugs assistance complement CGM devices and amended patients' power implicit their health. What the drugs don't look to beryllium doing is replacing CGM devices. That's fantabulous quality for DexCom, arsenic it's benefiting from the GLP-1 gyration without having to make caller therapies.

Most drugmakers that are presently trying to bash truthful volition apt fail. That's conscionable however the pharmaceutical manufacture works: Most caller compounds that participate objective trials ne'er marque it to the market. Some will, but whichever ones bash won't truly substance to DexCom. Growing GLP-1 prescriptions for diabetes patients could thrust request for its ain devices, nary substance which drugmaker dominates this space. It's a win-win concern for DexCom.

DexCom's addressable marketplace is underpenetrated. The institution estimates that implicit 9 cardinal patients successful the U.S. person reimbursement for CGM devices but person yet to opt in. For context, the company's planetary installed basal is astir 2.5 cardinal patients. Considering the opportunities successful the U.S. and abroad, DexCom's maturation runway looks massive.

The emergence of GLP-1s won't beryllium its lone -- oregon possibly adjacent its main -- tailwind. DexCom's changeless innovations, enlargement into caller markets, and efforts to unafraid reimbursement for much patients successful much countries person historically driven coagulated fiscal results. For each those reasons, its banal looks attractive. As the institution profits from the GLP-1 wars and different tailwinds, investing $10,000 (that's not being saved for emergencies) successful shares contiguous could beryllium a large move.