NEJM Publication of CONNECT Trial Boosts DexCom's Medicare Coverage Hopes
DXCM sits 62% above its 52-week low of $54.11 on light trading volume (0.2× avg).
Summary
DexCom shares rose after The New England Journal of Medicine published CONNECT trial results showing its G7 CGM cut A1C by 1.6% on average in type 2 diabetes patients not on insulin, 0.9% better than routine care, with patients spending about five extra hours daily in target glucose range. The 440-patient study across 22 U.S. primary care sites is the key evidence supporting Medicare reimbursement for CGM in the T2 non-insulin population. Analysts at Leerink and TD Cowen see the peer-reviewed publication as materially de-risking that opportunity, with a Medicare coverage decision expected before year-end 2026 and implementation in mid-2027. This follows a strong Q2 reported July 30 with revenue up 13% to $1.31 billion and operating income up 50%. The Medicare decision is the next binary event for the stock.
At the time of this announcement, DXCM was trading at $87.85 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $33.2B. The 52-week trading range was $54.11 to $92.59. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.