Teladoc Health will launch a pilot demonstration of Dexcom’s wearable, continuous glucose monitoring systems in patients with Type 2 diabetes—picking up the torch from the devicemaker’s partnership with Livongo following its $18.5 billion acquisition last year.
The project will start by supplying the blood sugar sensors at no cost to certain members of Teladoc and Livongo’s diabetes program before expanding the pilot’s reach throughout the course of the year.
The goal is to improve outcomes and healthy glucose levels among people with Type 2 diabetes, by providing them with the same real-time recommendations for lifestyle decisions, isual data and personal trends offered to people with Type 1 diabetes.
Type 2 diabetes represents a large market for Dexcom and its glucose monitors—including patients who are and are not receiving intensive insulin therapies—and serves as a main pillar of the company’s growth strategy for this year, Chairman, President and CEO Kevin Sayer said during the annual J.P. Morgan healthcare conference.
“Non-intensive Type 2 patients are a huge opportunity here in the U.S., with seven times more patients than there are in the intensive insulin space,” Sayer said. “And if you add to that prediabetes and diabetes prevention, the number of opportunities to serve patients in this market just becomes massive.”
“I'm frequently told by our team that when this market goes, it is going to explode—it's not going to be small, and it's not going to be slow,” he said. “There's often a perception that Type 2 patients don't want the same data a Type 1 patient wants. But if you look at our market research, absolutely the same percentage of patients wants to get into CGM and wants to use it.”
“I believe personally at the right price with the right solution, patients will use it all the time,” he added.
Sayer also described 2020 as the company’s best year ever, with total revenue up more than 30% over the prior year, to north of $1.925 billion. For 2021, Dexcom said it expects to see another 15% to 20% of growth, with sales totaling $2.21 billion to $2.31 billion. The company’s full financial results are expected Feb. 11.
Looking ahead, 2021 will also be the year that Dexcom kicks the development of its next-generation CGM “into overdrive,” Sayer said. The new G7 sensor aims to be smaller and deliver an updated user interface and will be key to Dexcom’s plans to expand into additional international markets.