Dive Brief:
- Diabetes technology company Dexcom began sales of its first over-the-counter continuous glucose monitor (CGM) on Monday.
- The device, called Stelo, will cost $89 for a monthly subscription or $99 for a one-time order of two sensors. BTIG analyst Marie Thibault said the price was “in line with our prior $100 per month assumption.”
- Dexcom’s device is intended for people with Type 2 diabetes who don’t take insulin, although it can be used by people without diabetes. Competitor Abbott plans to launch two over-the-counter CGMs: one called Lingo, for people without diabetes, and one called Libre Rio, for people with diabetes who don’t use insulin. It has not yet priced either sensor.
Dive Insight:
Dexcom had planned to launch Stelo in August. CEO Kevin Sayer said on a July 25 earnings call that the company expects a 1% revenue contribution from the device this year. Dexcom is targeting people in the U.S. with Type 2 diabetes who don’t take insulin, as well as people with prediabetes.
Last quarter, the company lowered its sales forecast to a range of from $4 billion to $4.05 billion for 2024, down from a range of from $4.2 billion to $4.35 billion. Sayer attributed the drop to a sales force restructuring, pharmacy rebates and lost market share with durable medical equipment companies.
Despite these challenges, CFO Jereme Sylvain told investors, “with non-insulin opportunities with Stelo and the OTC products, I think it's a market that can continue to grow for some time.”
Stelo is a 15-day sensor based on Dexcom’s other glucose monitors. The main difference from prescription products is in what information users get through the app.
Stelo flags glucose spikes, provides information on time-in-range goals, and includes meal and activity logging. The intent is to reveal how food, exercise and sleep can affect a person’s glucose levels.
Abbott said it plans to debut its competing Lingo device this summer. The company has not said when it will launch its Rio CGM.
