Dexcom sets price for first over-the-counter blood glucose meter

Diving certificate:

• Diabetes technology company Dexcom started selling its first over-the-counter continuous glucose monitor (CGM) on Monday.
• The device, called Stelo, costs $89 for a monthly subscription or $99 for a one-time order of two sensors. BTIG analyst Marie Thibault said the price is “in line with our previous assumption of $100 per month.”
• Dexcom's device is intended for people with type 2 diabetes who do not take insulin, although it can also be used by people without diabetes. Competitor Abbott plans to launch two over-the-counter CGMs: one called Lingo for people without diabetes and one called Libre Rio for diabetics who do not take insulin. It has not yet set a price either sensor.

Diving insight:

Dexcom had planned to launch Stelo in August. CEO Kevin Sayer said on a July 25 conference call that the company expects the device to contribute 1% of revenue this year. Dexcom is targeting people with type 2 diabetes who do not take insulin, as well as people with prediabetes, in the U.S.

In the last quarter, the company lowered its sales forecast to a range of $4 billion to $4.05 billion for 2024, up from a range of $4.2 billion to $4.35 billion. Sayer attributed the decline to a sales force restructuring, pharmacy discounts and lost market share at durable medical equipment companies.

Despite these challenges, CFO Jereme Sylvain told investors: “Given the opportunities offered by Stelo and OTC products outside of insulin, I believe this market can continue to grow for some time.”

Stelo is a 15-day sensor based on Dexcom's other glucose monitors. The main difference from prescription products is the information users receive through the app.

Stelo flags glucose spikes, provides information on target times in the target range, and includes meal and activity logging. The goal is to show how food, exercise and sleep can affect a person's glucose levels.

Abbott said it plans debut its competing device Lingo this summer. The company has not said when it will launch its Rio CGM.