Sector: Health Care | Focus: Health Care Equipment
HQ: San Diego, California
Financial Risks
DexCom faces risks from patent infringement lawsuits with Abbott, including potential unfavorable outcomes and uncertain damages. Securities class action and derivative lawsuits also pose risks, with uncertain outcomes and potential adverse impacts on the business and financial condition. Market risks related to debt securities, foreign currency exchange, and general economic conditions are also mentioned. Future capital requirements are dependent on various factors, including product development success, operational scaling, and regulatory approvals.
Financial Upside
DexCom's revenue increased in both the three and nine-month periods, driven by increased sales volume and a growing customer base. The company has significant cash on hand and access to credit facilities, providing liquidity for operations and potential investments. Proceeds from senior convertible notes issuances and positive operating cash flows are also positive indicators. The company's new over-the-counter glucose biosensor (Stelo) represents a potential new revenue stream.
