10-KPeriod: FY2013

DEXCOM INC Annual Report, Year Ended Dec 31, 2013

Filed February 20, 2014For Securities:DXCM

Summary

DexCom, Inc. (DXCM) is a medical device company specializing in continuous glucose monitoring (CGM) systems. The company's primary product, the G4 PLATINUM system, is designed for ambulatory use by individuals with diabetes, offering real-time glucose readings, trend information, and alerts. As of the February 20, 2014 filing, DexCom has received FDA approval for a pediatric indication for the G4 PLATINUM system, expanding its target market. The company is also developing an in-hospital glucose monitoring system, GlucoClear, and a remote monitoring system, DexCom SHARE. Despite significant revenue growth, driven by the G4 PLATINUM system's commercialization, DexCom continues to incur net losses, consistent with its history since inception. Key challenges include the ongoing need for reimbursement from third-party payors, the competitive landscape with established medical device manufacturers, and potential patent litigation with Abbott. The company's strategy focuses on technological innovation, expanding market access through direct sales and partnerships, and securing broad insurance coverage and reimbursement for its products.

Financial Highlights

49 data points
Beta

Revenue

$160.00M

62.6% Gross Margin

Net Income

-$29.80M

-18.6% Net Margin

EPS (Diluted)

$-0.10

Total Assets

$122.50M

Cash & Equivalents

$43.20M

Free Cash Flow

-$5.50M

Financial Statements
Beta
Revenue$160.00M
Cost of Revenue$59.90M
Gross Profit$100.10M
R&D Expenses$44.80M
SG&A Expenses$84.20M
Operating Expenses$129.00M
Operating Income-$28.90M
Interest Expense$900K
Net Income-$29.80M
EPS (Basic)$-0.10
Shares Outstanding (Basic)284.40M

Key Highlights

  • 1DexCom's primary product is the G4 PLATINUM continuous glucose monitoring (CGM) system for ambulatory use.
  • 2The company received FDA approval for a pediatric indication for the G4 PLATINUM system, expanding its market reach.
  • 3DexCom reported significant product revenue growth, driven by increased sales of the G4 PLATINUM system.
  • 4Despite revenue growth, the company continues to operate at a net loss, a trend since its inception.
  • 5Reimbursement from third-party payors remains a critical factor for widespread adoption and is a key focus for the company.
  • 6The company is actively engaged in patent litigation with Abbott Diabetes Care, Inc. concerning alleged infringement of continuous glucose monitoring technologies.
  • 7DexCom is developing complementary products like the DexCom SHARE remote monitoring system and an in-hospital system, GlucoClear.

Frequently Asked Questions

DexCom is a medical device company focused on designing, developing, and commercializing continuous glucose monitoring (CGM) systems. Its primary product is the G4 PLATINUM system, an ambulatory CGM device that provides real-time glucose readings and trend information for individuals with diabetes.

DexCom has experienced significant growth in product revenue, largely driven by the G4 PLATINUM system. However, the company has consistently incurred net losses since its inception and anticipates continued losses as it invests in research and development and commercialization efforts.

Key challenges include obtaining broad reimbursement from third-party payors, intense competition from established medical device companies, ongoing patent litigation with Abbott, and the need for continued product innovation. The company also faces regulatory hurdles and the complexities of scaling manufacturing.

DexCom's strategies include developing next-generation CGM technologies, expanding market access through its direct sales force and distribution partnerships, integrating its technology with insulin pumps, and obtaining broader insurance coverage and reimbursement for its products. They are also exploring new indications, such as for pregnancy and pediatric use.