DexCom (DXCM) noticed its shares drop by greater than 5% intra-day right this moment. This decline comes amidst reviews by analysts at JPMorgan and Piper Sandler concerning the potential results of Medicare’s exploration of cost-saving measures for steady glucose displays (CGMs), like these provided by Dexcom (NASDAQ:) and Abbott (ABT).
The Facilities for Medicare and Medicaid Providers (CMS) are contemplating changes to cost charges for the fiscal 12 months 2025, noting that in 2022, Half B allowed funds exceeding $1.1 billion for CGMs and sensors, as acknowledged in an Inspector Common discover.
Piper Sandler views any potential affect on Dexcom as fairly manageable. “We don’t wish to be dismissive of CMS probably slicing worth on CGMs however having seen the delays and push again that accompanied the scenario within the obstructive sleep apnea house,” stated the analysts, “we don’t suppose it is going to be one thing to harm DXCM within the close to to intermediate time period.”
Analysts at JPMorgan adopted an much more optimistic stance, suggesting that the CMS analysis would possibly develop into insignificant. In a be aware to shoppers, they theorized that if Medicare does decrease reimbursement charges, the majority of the worth lower would possible be absorbed by sturdy medical gear (DME) suppliers relatively than by Dexcom or Abbott.
Each Piper Sandler and JPMorgan at the moment suggest Dexcom inventory as a buy-equivalent obese.
