Continuous Glucose Monitoring: Future Innovations and Strategic Partnerships

Current and Future Innovations in CGM Technology

Medtronic, Insulet, Dexcom, and Abbott are driving CGM technology forward with next-generation sensors, intelligent dosing systems, and AI. They emphasize continuous R&D investment, new product cycles, and expanding CGM applications to broader populations, including non-diabetics, ensuring robust market growth and innovation.

"We've pioneered first-of-its-kind innovations for over 40 years and are committed to designing the future of diabetes management through next-generation sensors (CGM), intelligent dosing systems, and the power of data science and AI while always putting the customer experience at the forefront." --- (MDT, press release, 2024/08/07)

"So the technology itself is driving market growth, and our CGM partners are doing it, and we're leading the way in AID." --- (PODD, earning call, 2024/Q1)

"We will be very well-positioned in '25 and years going forward. And let's not forget at this call, we continue to deliver outstanding worldwide top-line growth, continued growth operating margin expansion, at the same time, we have not at all skimmed on investing on our future products and R&D, and we have a very strong commitment to creating the scale necessary to drive this business where it needs to get and pursue all of our opportunities. Thanks, everybody, and we appreciate your support on the call today." --- (DXCM, earning call, 2024/Q1)

"I think in the U.S., there’s still about a third of multiple daily injectors that aren’t using CGM, and international developed markets, it’s around 50%, so there’s plenty of growth in Libre.Our strategy here with Lingo and Libre Rio is just really to have a full portfolio and look at this as a platform where we can expand the use of the sensor technology across different types of diabetes populations, but also what is probably the larger market, which is people that don’t have diabetes, right?" --- (ABT, earning call, 2024/Q2)

"We're at the beginning stages of new product cycles. The runway from the differentiated technologies we've recently launched, along with the innovation we will launch over the next 12 months, give me significant confidence in our ability to drive durable growth." --- (MDT, earning call, 2024/Q4)

Market Demand and Growth Drivers for CGM

Strong market positions, expanding global operations, and strategic focus on emerging markets and automated insulin delivery are key drivers of growth and demand for continuous glucose monitoring (CGM) systems.

"With our lead position in the market and the many catalysts for us this year, we are in a great position to continue to deliver robust revenue and customer base growth in 2024 and well beyond." --- (PODD, earning call, 2024/Q2)

"As demand grows for our products, we will continue to expand global operations to meet demand through investments in manufacturing and operations." --- (DXCM, sec filing, 2024/Q1)

"Geoff Martha: Sure, Josh. Thanks for the question. Look, as I think most of you know, I mean, emerging market focus has been something that we've been on for a long time, and has been almost like an independent growth driver for us up until basically COVID, right, when certain markets like China shut down and then you had VBP." --- (MDT, earning call, 2024/Q4)

"We've got a very strong market leadership position, the right product portfolio to address the needs of both the type 1 and the type 2 global markets and a clear and focused strategy to drive continued growth leveraging our significant competitive advantages." --- (PODD, earning call, 2024/Q1)

"We believe this strategy positions us well and will drive our growth as the market continues to shift to Automated Insulin Delivery and Smart Dosing." --- (MDT, earning call, 2024/Q4)

Competitive Landscape in the CGM Market

Insulet Corporation (PODD) is confident in its competitive position within the CGM market, despite a market-wide reduction in competitive switching. The company has seen strong performance in new customer starts, particularly in Europe, and considers itself a net winner in competitive switches, indicating a robust competitive landscape.

"starts in both Q3 and Q4, our guidance now contemplates a less steep ramp of new customer starts in the second half of 2024, driven by both the overall market reduction in competitive switching that Jim referred to, and the slightly longer facing period of our G7 Pods through our retail channel partners." --- (PODD, earning call, 2024/Q2)

"While we continue to expect sequential growth in new customer starts in both Q3 and Q4, our guidance now contemplates a less steep ramp of new customer starts in the second half of 2024, driven by both the overall market reduction in competitive switching" --- (PODD, earning call, 2024/Q2)

"We're very, very confident in our competitive position. New customer starts in the first quarter in the U.S. came in right in line with our expectations, and obviously, in Europe did really, really well, which led us to raise our guide." --- (PODD, earning call, 2024/Q1)

"But it seems like we're still maybe not there but getting real close to an inflection not just for the market but maybe your competitive positioning in there with O5 as well." --- (PODD, earning call, 2024/Q1)

"What we see consistently both with our own proprietary market research, which we put in place in the last few quarters, and also with third-party data is that we are the clear net winners in the competitive switch game." --- (PODD, earning call, 2024/Q1)

User Adoption and Patient Experience

Efforts to enhance user experience for patients and doctors are crucial for accelerating device adoption. Personalization and effective communication of value to physicians and consumers are key strategies. Ease of use and successful product offerings, like Omnipod DASH, significantly drive user adoption and improve patient experience.

"So we're looking at all of those things to improve user experience for patients and doctors so that device adoption can go can accelerate and so we can help more people." --- (PODD, conference, 2024/06/24)

"I think it’s going to be important to generate data, even if it’s not to communicate to payors to get reimbursement, but even if it’s to communicate to physicians, the primary care and the direct consumers, that there’s a value here of doing that. I think the key thing here is personalization and how do you personalize information and the data and the coaching, so the strategy here is, yes, you’re doing to have to use TV to be able to communicate, but I don’t think it’s--I don’t think given our experience here that you could just go on TV and blast" --- (ABT, earning call, 2024/Q2)

"So, it's a mix of everything, Bill, but I think we're in a good spot. We will learn in a non-intensive insulin therapy world and figure out how to build product offerings that maximize our experience with those users." --- (DXCM, earning call, 2024/Q1)

"So, so but the answer to your question from my, from a non clinical perspective, you're up against ease of use, like I said, and I used to get mad how can physicians do this, but they look, they got a crazy day, they got a lot going on, and they have to check back in on the ease of use because it's got a lot better." --- (MDT, event transcript, 2024/04/07)

"That will have more or less effect within the year. But we expect to have great adoption in France because Omnipod DASH has been so successful and it's so demanded by patients. So just to give you a color on kind of the starts dynamic for us." --- (PODD, earning call, 2024/Q1)

Cost Considerations and Reimbursement Policies

Insulet Corporation reports that over 90% of covered lives in the U.S. have great reimbursement, with most patients paying less than $50 out of pocket. Additionally, international markets are seeing improved reimbursement and pricing, contributing to faster new patient growth.

"People it absolutely is direct correlation there. So I think, as you mentioned, we have great reimbursement today over 90% of covered lives in the U. S. Majority of our patients pay less than $50 out of pocket." --- (PODD, conference, 2024/06/24)

"Your line is open. Steven Lichtman: Thank you. Good evening, everyone. On the international strength you were seeing versus you're thinking heading into the year, are you seeing better reimbursement and pricing in addition to faster new patient growth?" --- (PODD, earning call, 2024/Q2)

Potential Challenges and Risks in the CGM Market

Supply chain disruptions, financial market conditions, reimbursement challenges, competition, adoption rates, channel mix, pricing, and international expansion are key risks in the CGM market. Companies like Insulet and Dexcom are actively addressing these issues to ensure market stability and growth.

"We continue to experience challenges stemming from the global supply chain disruption; however, while there is no guarantee of future performance, to date we have been able to successfully mitigate this disruption and ensure uninterrupted supply to our customers by increasing our inventory levels and taking other measures." --- (PODD, sec filing, 2024/Q2)

"The general condition of the financial markets and the economy may increase those risks and may affect the value and liquidity of investments and restrict our ability to access the capital markets." --- (DXCM, sec filing, 2024/Q1)

"From them to do it, they'll have to do with lots of workarounds. There's going to be reimbursement challenges." --- (PODD, earning call, 2024/Q1)

"I was trying to impress you with my deep voice. I guess that didn't work. In terms of how the confidence on the year, one of the things that as we go into a quarter we try to set a base case, and the base case has risk around things like competitors, things like adoption in the basal base, things like what we would do in terms of channel mix and pricing, internationally expansion." --- (DXCM, earning call, 2024/Q1)