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DexCom (DXCM) Partners With RxFood for Automated Dietary Monitoring
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DexCom, Inc. (DXCM - Free Report) and privately-held RxFood Corporation have entered into an agreement to bring their respective expertise together and introduce an improved digital health solution for those with diabetes. The companies have partnered to introduce such services currently in Canada.
RxFood is a leading company in the medical nutrition therapy segment. It uses powerful Artificial Intelligence models that help in dietary assessments and recommendations leveraging images of foods consumed by the users. The company is trying to create an impression of personalized nutrition and food as medicine.
RxFood app has been primarily tested on families with diabetic children. Clinical data demonstrated that the app has helped reduce the time associated with day-to-day diabetes management for children by parents. The company’s technology enables personalized care recommendations by providing more complete food records with higher accuracy (compared to manual entries) to clinicians.
Price Performance
Shares of DexCom have lost 21.7% year to date compared with the industry’s 8.9% decline. The S&P 500 has witnessed 14.2% growth in the said time frame.
Image Source: Zacks Investment Research
Significance of the Deal
DexCom is already providing a cutting-edge technology through its continuous glucose monitoring (CGM) systems like G6, G7 and others that is leading to better management of diabetes. The company’s CGM technology has made it a leader in the diabetes care technology segment.
DXCM has always focused on bringing industry-leading technology to improve and transform day-to-day management of diabetes. It will now introduce automatic food and nutrition tracking (with the help of RxFood app’s image-recognition technology) to its CGM users.
The company believes that continuous glucose monitoring is a key part of diabetes management but type, amount and timing of food intake are also important. The partnership will provide unified, time-matched food and glucose data reports. The addition of RxFood app to DexCom’s CGM universe will help seamless recording of dietary metrics, which when combined with glucose data will enable personalized nutritional guidance at scale.
The combined system will be available to Canadians with diabetes, following the commercial launch of Dexcom G6 CGM system or the Dexcom G7 CGM system. Currently, the RxFood app, featuring the Dexcom CGM glucose data integration, is available to health care program stakeholders across Canada including hospitals, insurers and employers.
We note that DXCM is also partnering with automated insulin delivery makers like Insulet Corporation’s (PODD - Free Report) . The company’s progress with its services will likely lead to the creation of an ecosystem, which will lead to more seamless diabetes management for patients through glucose monitoring, dietary assessment and insulin delivery, all without manual intervention. An efficient diabetes management system should lead to the accelerated adoption of DXCM’s products.
Notable Developments
Earlier this month, DexCom announced that its G6 CGM system can now connect with the Insulet Corporation’s Omnipod 5 Automated Insulin Delivery (AID) system in Germany. Insulet’s Omnipod 5 automatically adjusts insulin delivery and manages glucose levels both day and night. Insulet’s Omnipod 5 AID system is cleared for individuals with type 1 diabetes, aged 2 years and older.
In July, DexCom announced that its next-generation G7 CGM system received Health Canada’s approval for people with all types of diabetes, aged two years and above. The DexCom G7 has been built on the performance of DexCom CGM, which has been clinically proven to lower A1C, reduce hypoglycemia (low blood sugar) and improve time in range.
A couple of other top-ranked stocks in the broader medical space are Align Technology (ALGN - Free Report) and McKesson Corporation (MCK - Free Report) .
ALGN’s earnings surpassed estimates in two of the trailing four quarters and missed twice, delivering an average negative surprise of 1.76%. The company’s shares have risen 41.8% year to date compared with the industry’s 11.5% growth.
McKesson, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.7%. MCK’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 8.1%.
The stock has rallied 18.1% year to date compared with the industry’s 11.5% growth.
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DexCom (DXCM) Partners With RxFood for Automated Dietary Monitoring
DexCom, Inc. (DXCM - Free Report) and privately-held RxFood Corporation have entered into an agreement to bring their respective expertise together and introduce an improved digital health solution for those with diabetes. The companies have partnered to introduce such services currently in Canada.
RxFood is a leading company in the medical nutrition therapy segment. It uses powerful Artificial Intelligence models that help in dietary assessments and recommendations leveraging images of foods consumed by the users. The company is trying to create an impression of personalized nutrition and food as medicine.
RxFood app has been primarily tested on families with diabetic children. Clinical data demonstrated that the app has helped reduce the time associated with day-to-day diabetes management for children by parents. The company’s technology enables personalized care recommendations by providing more complete food records with higher accuracy (compared to manual entries) to clinicians.
Price Performance
Shares of DexCom have lost 21.7% year to date compared with the industry’s 8.9% decline. The S&P 500 has witnessed 14.2% growth in the said time frame.
Image Source: Zacks Investment Research
Significance of the Deal
DexCom is already providing a cutting-edge technology through its continuous glucose monitoring (CGM) systems like G6, G7 and others that is leading to better management of diabetes. The company’s CGM technology has made it a leader in the diabetes care technology segment.
DXCM has always focused on bringing industry-leading technology to improve and transform day-to-day management of diabetes. It will now introduce automatic food and nutrition tracking (with the help of RxFood app’s image-recognition technology) to its CGM users.
The company believes that continuous glucose monitoring is a key part of diabetes management but type, amount and timing of food intake are also important. The partnership will provide unified, time-matched food and glucose data reports. The addition of RxFood app to DexCom’s CGM universe will help seamless recording of dietary metrics, which when combined with glucose data will enable personalized nutritional guidance at scale.
The combined system will be available to Canadians with diabetes, following the commercial launch of Dexcom G6 CGM system or the Dexcom G7 CGM system. Currently, the RxFood app, featuring the Dexcom CGM glucose data integration, is available to health care program stakeholders across Canada including hospitals, insurers and employers.
We note that DXCM is also partnering with automated insulin delivery makers like Insulet Corporation’s (PODD - Free Report) . The company’s progress with its services will likely lead to the creation of an ecosystem, which will lead to more seamless diabetes management for patients through glucose monitoring, dietary assessment and insulin delivery, all without manual intervention. An efficient diabetes management system should lead to the accelerated adoption of DXCM’s products.
Notable Developments
Earlier this month, DexCom announced that its G6 CGM system can now connect with the Insulet Corporation’s Omnipod 5 Automated Insulin Delivery (AID) system in Germany. Insulet’s Omnipod 5 automatically adjusts insulin delivery and manages glucose levels both day and night. Insulet’s Omnipod 5 AID system is cleared for individuals with type 1 diabetes, aged 2 years and older.
In July, DexCom announced that its next-generation G7 CGM system received Health Canada’s approval for people with all types of diabetes, aged two years and above. The DexCom G7 has been built on the performance of DexCom CGM, which has been clinically proven to lower A1C, reduce hypoglycemia (low blood sugar) and improve time in range.
DexCom, Inc. Price
DexCom, Inc. price | DexCom, Inc. Quote
Zacks Rank & Other Key Picks
DexCom currently carries a Zacks Rank #2 (Buy).
A couple of other top-ranked stocks in the broader medical space are Align Technology (ALGN - Free Report) and McKesson Corporation (MCK - Free Report) .
Align Technology, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 17.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ALGN’s earnings surpassed estimates in two of the trailing four quarters and missed twice, delivering an average negative surprise of 1.76%. The company’s shares have risen 41.8% year to date compared with the industry’s 11.5% growth.
McKesson, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.7%. MCK’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 8.1%.
The stock has rallied 18.1% year to date compared with the industry’s 11.5% growth.