DexCom says CGM use increases in T2 diabetics on GLP-1s, says Jefferies

Jefferies analyst Matthew Taylor notes that DexCom has updated its investor deck to show that it has found that CGM use increases in T2 diabetics with GLP-1 therapy initiation. While the firm says it doesn’t “normally write a report on a new slide in a company investor deck,” it views this finding as “a meaningful counter-punch to the pressure” shares have been under since mid-July, which it attributes as largely due to worries that GLP-1 drugs could impact the obesity/diabetic growth curves. The firm, which argues that the CGM market is “so large and underpenetrated” that even some improvement in disease progression from GLP-1 drugs would “likely only scratch the surface of the opportunity ahead,” keeps a Buy rating and $155 price target on DexCom shares, which are up $4.17, or 4%, to $104.50 in pre-market trading.