© Reuters. Sort 2 diabetes affected person Adedotun Adebayo (15) registers his new Dexcom gadget, a steady glucose monitoring system, at his residence in Glenarden, Maryland, U.S., July 15, 2021. REUTERS/Hannah Beier/File picture
(Reuters) -Medical gadget maker Dexcom (NASDAQ:) on Thursday raised its annual income forecast and beat quarterly estimates on robust demand for its steady glucose monitoring (CGM) units, sending its shares greater than 14% increased in prolonged buying and selling.
Makers of medical merchandise corresponding to bariatric surgical procedure units and CGM techniques have been making an attempt to ease investor considerations over a possible hit to demand from the rising reputation of recent GLP-1 diabetes medicine corresponding to Novo Nordisk (NYSE:)’s Ozempic and Eli Lilly (NYSE:)’s Mounjaro.
Dexcom joined bigger peer Abbott in saying the usage of GLP-1 medicine amongst diabetes sufferers may find yourself rising demand for CGMs, which monitor blood sugar ranges all through the day and may transmit glucose readings as often as 5 minutes.
“Physicians are additionally pursuing CGM as they add GLP-1 as diabetes remedy,” mentioned Dexcom CEO Kevin Sayer, including that the gadget is given to sufferers as a scoreboard to allow them to understand how they’re doing.
Dexcom’s quarterly gross sales rose 27% to $975 million, surpassing analysts’ estimates of $939.24 million, in keeping with LSEG information.
Abbott had additionally posted robust gross sales of $1.4 billion for its CGM system FreeStyle Libre in diabetes care.
Dexcom raised its annual income forecast to between $3.58 billion and $3.6 billion, in contrast with its earlier vary of $3.5 billion to $3.55 billion. Analysts count on annual gross sales of $3.55 billion.
Excluding objects, the corporate posted a revenue of fifty cents for the quarter ended Sept. 30, in contrast with estimates of 35 cents.
Shares of the California-based firm rose to $93 after the bell.
