Dexcom (DXCM) leads the continuous glucose monitoring (CGM) market

Dexcom (DXCM) is a leading healthcare company in the continuous glucose monitoring (CGM) sector, enabling real-time blood sugar checks without fingersticks. It possesses innovative technology that transmits 24-hour blood glucose levels to smartphones via small skin-attached sensors, playing a crucial role in diabetes management.

Dexcom's main products include CGM systems like G6 and G7, and it recently expanded its customer base by launching Stelo, an over-the-counter sensor for Type 2 diabetics not on insulin and health-conscious individuals. The system comprises disposable skin-attached sensors, a transmitter that sends glucose readings to smart devices, and software/mobile apps providing glucose trend graphs and alerts.

Dexcom generates consistent revenue through a razor-and-razor-blade business model. Users must periodically replace sensors, creating a steady cash flow, which leads to high customer retention and a stable revenue structure. Investors are also considering competitive dynamics with Abbott, the impact of GLP-1 class treatments, and the expansion of health insurance coverage.