In medical devices, Dexcom is leading the way in changing the standard of care for glucose monitoring in diabetes patients through technology.
Their continuous glucose monitoring devices have positive outcomes for patients, as it improves lives through better disease management, and society, as it reduces the overall health cost of treating the disease. It is the only pure play company in this fast-growing sector and currently holds about 70 per cent market share of the Type-1 segment in the US.
Dexcom is tapping into the non-intensive segment of the market, which could benefit from intermittent monitoring and/or screening.
In the US this implies a huge increase in the addressable market from the core intensive market of 3.2m patients, to the non-intensive market, which stretches beyond the estimated 27m Type-2 non-intensive patients.
These scalable market opportunities are reflected in the company’s financials: its revenue increased to $1.47bn in 2019, up 42 per cent year-on-year and 20 times higher than its level in 2011 (when it stood at $76m). It also posted a 37 per cent compound annual growth rate since 2015.
We expect Novo Nordisk, Dexcom and other companies delivering positive impact across the healthcare sector to continue their strong growth trajectory, offering investors an opportunity to achieve sustainable wealth creation, while investing for the wider benefit of society.
Ingrid Kukuljan is head of impact investing, international at Federated Hermes
