After reporting 27% growth for the whole of last year, Dexcom is sticking to that trajectory as it moves into 2022. The diabetes sensor company posted a 25% increase in sales for the first three months of this year compared to the same period in 2021.
That amounted to $628.8 million in revenue for the quarter, or gross profits totaling $398.1 million—cash the company collected as it set itself up for the year ahead, with the European approval and launch of its latest continuous glucose monitor, the G7, and plotted the first international rollouts of a simpler, less-expensive system dubbed the Dexcom One.
“Our plan is to extend the G7 launch to a steady cadence of additional international markets over the remainder of 2022, with a growing impact to our overall sensor mix in the second half of the year,” President and CEO Kevin Sayer said on an earnings call with investors.
“In the U.S., our 510(k) submission for the G7 sensor, receiver and Android and iOS apps remains under review. We are in the traditional back and forth that comes with these processes,” Sayer said, adding that he believed the FDA’s green light would more than likely come in the latter half of the year.
The company also took steps to move into hospital use, garnering a breakthrough designation from the FDA for a wearable CGM in development for tracking the blood sugar levels of patients during their stay.
Dexcom One, meanwhile, represents the company’s first stab at offering multiple products at different pricing tiers, with the goal of accessing a broader market of people with diabetes.
The pared-down system operates similarly to Dexcom’s current G6 CGM and uses the same 10-day sensor hardware. However, its software does not provide the same range of high-tech features, automated alerts and real-time data sharing that come with the G6 and G7. Dexcom One was recently introduced in Spain, and the company plans to make it available in the U.K. next.
“We expect this dual-product strategy to significantly expand the number of people with reimbursed access to our CGM technology, broadening our growth opportunity in these countries as well as additional countries where we plan to bring Dexcom One in the future,” Sayer said.
The company expects Dexcom One as well as its future G7 rollouts to contribute to a forecasted $2.82 billion to $2.94 billion in revenue for the 2022 fiscal year, representing between 15% and 20% annual growth.