DexCom Continues to Gain; Enters Data Integration Deal - Analyst Blog

Shares of CA-based glucose monitoring systems provider DexCom, Inc. ( DXCM ) have climbed nearly 14.6% since the announcement of its encouraging 2014-second quarter results last week followed by the revelation of its data integration relationship with Silicon Valley-based manufacturer of Asante Snap Insulin Pump, Asante Solutions, Inc.

Dexcom collaborated with privately-held Asante to integrate insulin data from the Asante Snap Insulin Pump into its mobile app platform to facilitate simplified diabetes management. The platform provides timely and accurate data, supporting effective diabetes control for patients.

DexCom's first-of-its-kind mobile app platform, designed to aggregate glucose and other diabetes-related data from patients' devices and display the integrated data on a smart phone, is currently under development.

Asante Snap Insulin Pump is the second insulin delivery device to be integrated into the Dexcom mobile app, the first being Insulet Corporation's ( PODD ) OmniPod System. Notably, DexCom's mobile app platform will provide Insulet's OmniPod users a wider access to data, thus improving diabetes administration. It will also help diabetic people achieve better control on their disease.

Earlier, in June, DexCom disclosed its intentions to adopt an "open architecture" approach to diabetes-related data. The approach will include an "approved by DexCom" indication to validate the authenticity of devices and apps integrating DexCom CGM data.

DexCom posted a narrower loss of $7.0 million or 10 cents per share in the second quarter of 2014 compared with $10.1 million or 14 cents in the comparable quarter of 2013. The loss was in line with the Zacks Consensus Estimate.

DexCom's total revenues escalated 64.2% to $58.8 million, topping the Zacks Consensus Estimate of $53.0 million. The upside was driven by a significant 63.9% rise in product revenues to $58.2 million and 100% growth in development grant and other revenues to $0.6 million.

Moreover, DexCom exited the quarter with a higher cash balance of $49.5 million as of Jun 30, 2014, compared with $43.2 million as of Dec 31, 2013. Also, the total long-term debt went down 14.7% to $5.8 million from $6.8 million as of Dec 31, 2013.

Currently, DexCom carries a Zacks Rank #3 (Hold). Better-ranked stocks in the medical instruments sector include Alphatec Holdings, Inc. ( ATEC ) and RTI Surgical Inc. ( RTIX ) Both the stocks sport a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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