Stifel sees ‘unexpected diabetes tech marriage’ as negative for DexCom, others

Stifel analyst Mathew Blackman notes that Medtronic (MDT) and Abbott (ABT) have announced a partnership to integrate the former’s insulin devices–AID/Smart Pens–with the latter’s CGM technology. This announcement is a surprise, the firm says, as Medtronic has long maintained that a single-manufacturer ecosystem is best for patients and, of course, best for its economics. Stifel believes that for DexCom (DXCM), this is a directional negative, though assessing the impact is challenging without more information. Stifel’s first thought is that the impact will likely prove outside U.S.-centric, where Libre T1 adoption is more pervasive. For Insulet (PODD)/Tandem Diabetes (TNDM), this new arrangement will create a more competitive Medtronic platform and thus, could impact NRx share assumptions for both, the firm adds.