DexCom Set to Compete with Abbott in the Over-the-Counter CGM Space

On August 26, DexCom (NASDAQ: DXCM), a diabetes technology company, launched its over-the-counter continuous glucose monitor (CGM), Stelo, in the U.S. Stelo was approved by the U.S. health regulator in March for use by adults who do not use insulin. Stelo will compete with Abbott Laboratories’ (NYSE: ABT) Libre Rio, a device for adults with Type 2 diabetes who do not use insulin, and indirectly with Abbott’s Lingo device, marketed as a wellness product for people without diabetes. Both Abbott devices received FDA approval in June.

With this new launch, analysts expect the volume of DexCom’s consumable sensors, which focuses on glucose sensors that are the disposable parts of the CGM system, to grow by +31% year-over-year, reaching 85.4 million units in 2024. The consumable sensors segment is also projected to experience strong revenue growth of +16% year-over-year, although this is expected to be slower compared to the +29% growth seen last year.

Conversely, the durable systems segment, which includes CGM systems designed for long-term use, is anticipated to see a significant decline. Revenue from this segment is forecasted to drop by -35% year-over-year to $243 million, with volume decreasing by -27% to 1.5 million units in 2024. This decline is attributed to a market shift towards more integrated, consumable-focused CGM solutions and the potential spinoff of DexCom’s non-CGM business lines.