Dexcom: Mgmt Sets Stage for LT Growth, Margin Expansion and Share Buybacks

Research evidence excerpt

Dexcom: Mgmt Sets Stage for LT Growth, Margin Expansion and Share Buybacks

Barclays | Dexcom

Introduction and Overview:

Growth and Market Expansion, Driven by New Product Pipeline – Jake Leach, President

and CEO, provided an introduction to the meeting and an overview of the company's strategy

for growth. We summarize key points from his presentation below:

• 3 Core Growth Drivers - 1) Advanced, differentiated CGM product portfolio; (2) expanding

clinical and economic value by driving access faster than CGM penetration; (3) a scalable,

category-leading model that is expected to support durable double-digit growth and strong

cash flow.

• Mr. Leach also highlighted that throughout Dexcom's history clinical evidence has been

vital to unlocking access for patients:

° DIAMOND RCT (2016, ADA): established CGM as standard of care for T1D and intensive

insulin T2D.

° MOBILE RCT (2021, JAMA): expanded access into T2D on basal insulin, showing behavior

change and A1c reduction beyond hypoglycemia safety.

° Next Up: CONNECT Type 2 Non-Insulin RCT reading out at ADA on June 6, expected to

further expand T2D coverage in the US and internationally.

■The clinical trials have demonstrated the benefit of CGM and glucose control to an

expanding population, helping to lower and manage A1c, reducing cardiovascular risk,

supporting sustained weight loss and helping to delay the progression of chronic kidney

disease.

• Expanding the CGM Opportunity Through Scale and Evidence - Mr. Leach highlighted the

accelerating global diabetes burden, with the IDF projecting >850 million people with

diabetes by 2050, while diabetes already accounts for >25% of US healthcare spending; this is

further compounded by ~115 million pre-diabetic Americans (~40% of adults). The economic