DexCom Has a Lot to Prove in 2021
As the adage goes, two things in life are inevitable: death and taxes. Experienced growth investors might want to add a third inescapable truth to that list: Companies with a high-margin, fast-growing market to themselves will eventually see their space invaded by competition.
This is the situation with DexCom (NASDAQ: DXCM). The company was the first mover into the market for continuous glucose monitors (CGMs). These wearable devices allow people with diabetes to watch glucose levels without sticking their fingers to get blood samples. With such obvious advantages over existing methods for controlling insulin dosage and a growing incidence of diabetes, it's no wonder DexCom has delivered rapid growth, increasing revenue by 43% in 2019.
Competition isn't new for DexCom. However , investors are concerned about the success Abbott Laboratories (NYSE: ABT) is having with its second-generation CGM, FreeStyle Libre 2, which was approved in Europe in October 2018 and launched in the U.S. last quarter. Abbott is also in the process of launching a FreeStyle Libre 3 in Europe now. The U.S. could see that product within the next year or two.
Source Fool.com
