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Sell Dexcom For a 20% Win

Posted by on April 16, 2017 11:07 AM
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Categories: Stocks

April 16, 2017: Sell Dexcom for a 20% win in 68 days and congrats if you made money on the trade.

March 24, 2017: DexCom is pleased to announce that the U.S. Centers for Medicare & Medicaid Services (CMS) has published an article clarifying criteria for coverage and coding of the Dexcom G5 Mobile system, the only therapeutic CGM under this CMS classification. People covered by Medicare who have either Type 1 or Type 2 diabetes and intensively manage their insulin will now be able to obtain reimbursement.

“This is a new era and a huge win for people with diabetes on Medicare who can benefit from therapeutic CGM,” said Kevin Sayer, President and Chief Executive Officer, Dexcom. “This decision supports the emerging consensus that CGM is the standard of care for any patient on intensive insulin therapy, regardless of age.”

According to CMS, therapeutic CGM may be covered by Medicare when all of the following criteria are met:

The beneficiary has diabetes mellitus; and,
The beneficiary has been using a home blood glucose monitor (BGM) and performing frequent (four or more times a day) BGM testing; and,
The beneficiary is insulin-treated with multiple daily injections (MDI) of insulin or a continuous subcutaneous insulin infusion (CSII) pump; and,
The patient’s insulin treatment regimen requires frequent adjustment by the beneficiary on the basis of therapeutic CGM testing results.

In order to be included in this category, the system must be defined as therapeutic CGM, meaning you can make treatment decisions using the device. Dexcom G5 Mobile is the only system approved by the FDA to meet that criteria.

January 8, 2017: Traders are bottom feeding in DexCom stock after Cowen says DexCom should be close to a bottom. Cowen reiterates an Outperform rating on DexCom, and sets a price target of $90. Cowen thinks DexCom should be close to a bottom and sees little risk to their 2017 30% Y/Y growth forecast (regardless of guidance) and expects revenue growth to accelerate in 2018.

Cowen says DexCom valuation versus peers suggests downside should be limited from here. It may take time but firm expects this combined with fortified confidence in competitive positioning to drive multiple expansion over the next 12-18 months.

January 3, 2017: Morgan Stanley cuts DexCom to Equal Weight from Overweight, and sets a price target of $66. Morgan Stanley says guidance risk and 670G concerns are somewhat reflected but Libre is not. Morgan Stanley notes competitive concerns could intensify as investors digest Libre before clarity returns or catalyst (G6/Medicare) build into 2018. Morgan Stanley says fears of subsequent deceleration are likely to weigh on the multiple over the intermediate term.

December 20, 2016: DexCom gets expanded approval from the FDA for G5 mobile continuous monitoring system; now approved as a replacement for fingerstick testing in diabetics aged 2 years and older. The U.S. Food and Drug Administration today expanded the approved use of Dexcom’s G5 Mobile Continuous Glucose Monitoring System to allow for replacement of fingerstick blood glucose (sugar) testing for diabetes treatment decisions in people 2 years of age and older with diabetes. This is the first FDA-approved continuous glucose monitoring system that can be used to make diabetes treatment decisions without confirmation with a traditional fingerstick test. The system was previously approved to complement, not replace, fingerstick testing for diabetes treatment decisions.

December 19, 2016: Oppenheimer Raised DexCom to an Outperform rating, from Perform, and set a price target of $84.

DexCom Stock Chart

The Finviz screener settings used to find DexCom are: Sector Healthcare, EPS growth next year 80% – 90%, EPS growth next 5 years Over 30%, Sales growth past 5 years Over 30%

DexCom, Inc., headquartered in San Diego, California, is developing and marketing continuous glucose monitoring systems for ambulatory use by people with diabetes and by healthcare providers in the hospital.


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Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on unless specifically stated in the article. Owner of Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.
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