Diabetes Tech Companies Expand Coverage and Prepare for New Product Launches

In recent developments, major players in the diabetes technology sector are making significant strides in expanding coverage for continuous glucose monitors (CGMs) and preparing to launch new products. These advancements aim to address the growing needs of people with both Type 1 and Type 2 diabetes.

Dexcom Expands CGM Coverage for Type 2 Diabetes

Dexcom, a leader in CGM technology, has reported substantial progress in expanding coverage for its G7 glucose monitor. CEO Kevin Sayer announced that all three major U.S. pharmacy benefit managers now cover the G7 for anyone with diabetes. The company expects to have coverage for nearly 6 million people with Type 2 diabetes who don't take insulin by the end of the year.

"While this still represents only a portion of this 25 million-person population in the U.S., we often see smaller and customized plans quickly follow suit of the larger PBM formularies," Sayer stated during a May 1 earnings call.

Dexcom is also working on gathering evidence from a randomized controlled trial to submit a request to the Centers for Medicare and Medicaid Services for coverage of CGMs for people with diabetes who don't take insulin.

The company's efforts align with recent comments from government officials supporting wider availability of CGMs. Health and Human Services Secretary Robert F. Kennedy Jr. and Food and Drug Administration Commissioner Martin Makary have both expressed support for expanding access to these devices.

Dexcom reported a 12% year-over-year increase in revenue, reaching $1.04 billion in the first quarter.

Tandem and Insulet Prepare for New Product Launches

Tandem Diabetes Care is gearing up for several product launches and expansions. The company is seeking Europe's CE mark for its newer, smaller Mobi insulin pump, with plans to launch it outside the U.S. with multiple sensor integrations by year-end.

In February, Tandem received an expanded FDA indication for its Control-IQ+ algorithm for Type 2 diabetes. The company aims to launch this newer version internationally by the end of the year, pending regulatory approval.

Tandem is also developing an insulin patch pump, with a tubeless feature for its Mobi pump currently in verification testing and manufacturing buildout. The company has moved the development of its Sigi patch pump, acquired in 2022, to San Diego.

Meanwhile, Insulet Corporation, which received an expanded indication last year for its Omnipod 5 patch pump, reported that people with Type 2 diabetes now represent a growing portion of new patients. Eric Benjamin, chief product and customer experience officer, revealed that people with Type 2 diabetes made up more than 30% of new starts in the first quarter, up from 25% in the fourth quarter.

Insulet estimates that the Type 2 indication expands its total addressable market in the U.S. to more than 5.5 million people with Type 2 diabetes who take insulin. The company believes the market is less than 5% penetrated and sees potential for significant growth.

In the first quarter, Insulet reported a nearly 29% increase in revenue to $569 million compared to the previous year. The company also announced the appointment of Ashley McEvoy as its new CEO.