At the J.P. Morgan Healthcare Conference, Dexcom CEO Kevin Sayer unveiled compelling new data on the company’s first over-the-counter glucose sensor, Stelo. This device, aimed at individuals not requiring insulin, has garnered significant attention and user adoption since its launch in August 2024. The presentation also included a financial update that highlighted Dexcom’s strategic vision for expanding coverage and advancing diabetes management solutions.

Empowering Health with Cutting-Edge Technology

Stelo's Rapid Growth and Market Reception

Dexcom’s innovative Stelo sensor has seen remarkable uptake among users who do not rely on insulin therapy. Launched last summer, this device quickly attracted around 140,000 subscribers by year-end. Initially, Stelo found its niche among health-conscious consumers eager to monitor their glucose levels more effectively. However, as awareness grew, it began attracting more individuals with Type 2 diabetes and prediabetes.The subscription model proved popular, with most users opting for the $89 monthly plan over a one-time purchase. Despite some initial sales projections falling short—Stelo generated $22 million in revenue in 2024, lower than anticipated—the device remains a cornerstone of Dexcom’s strategy to broaden access to continuous glucose monitoring (CGM).

Paving the Way for Expanded Coverage

Dexcom is actively working to secure insurance coverage for CGMs among people with Type 2 diabetes. The company has already achieved significant milestones, winning endorsements from two of the three largest pharmacy benefit managers. This breakthrough provides access to an additional 5 million potential users who aren’t intensive insulin users or taking multiple daily injections.Expanding coverage is crucial for Dexcom’s long-term goals. Sayer envisions a future where anyone diagnosed with diabetes can have CGM covered by insurance. While Stelo currently operates on a cash-pay basis, Dexcom is exploring reimbursement options with insurers, aiming to position Stelo as a leading platform for pre-diabetes and wellness applications.

Advancing Clinical Evidence for Broader Adoption

To bolster its case for expanded coverage, Dexcom initiated a randomized controlled trial focused on Type 2 diabetes patients not on intensive insulin therapy. Enrollment began last year, with plans to complete it in the first half of 2025. This study will include participants using other diabetes medications like metformin and GLP-1s, providing comprehensive data to support broader insurance acceptance.The trial aims to demonstrate the clinical benefits of CGMs in managing Type 2 diabetes, potentially transforming how healthcare providers approach non-insulin-dependent cases. By generating robust evidence, Dexcom hopes to influence policy changes and improve patient outcomes.

Innovations on the Horizon

Dexcom is not resting on its laurels. Sayer previewed several upcoming enhancements to the company’s CGM lineup. A 15-day sensor is set to debut in the latter half of the year, addressing user preferences for longer wear times and reducing operational costs. Abbott’s Freestyle Libre devices already offer 15-day sensors, making this upgrade a strategic necessity for Dexcom.Moreover, Dexcom is partnering with Ōura to integrate sleep data into the Stelo platform, enhancing its appeal for holistic health monitoring. Future integrations with meal-tracking apps like MyFitnessPal will further enrich user experiences. The company is also developing a next-generation CGM that promises to be smaller, less expensive, and feature advanced electronics. Research into multi-analyte probes, capable of measuring substances like lactate and ketones, underscores Dexcom’s commitment to innovation.

Financial Performance and Strategic Outlook

Dexcom’s financial performance reflects both challenges and opportunities. The company pre-announced fourth-quarter sales of $1.11 billion and full-year 2024 revenues of $4.03 billion. These figures represent a rebound from earlier forecasts, which were adjusted downward in July due to salesforce restructuring and other factors.Looking ahead, Dexcom projects 2025 revenues of $4.6 billion. The company’s strategic focus on expanding coverage, enhancing product offerings, and driving innovation positions it well for continued growth. As Dexcom continues to refine its offerings and advocate for broader CGM adoption, it stands poised to revolutionize diabetes management and improve countless lives.