DXCM Takes Immediate Action to Address Theft and Unauthorized Distribution

Research evidence excerpt

DXCM Takes Immediate Action to Address Theft and Unauthorized Distribution

Medical Supplies & Devices: Diabetes

DexCom

TD SECURITIES (USA) LLC QUICK TAKE: COMPANY UPDATE

May 26, 2026

Price: $72.01 (05/26/2026) DXCM Takes Immediate Action to Address

Price Target: $75.00 Theft and Unauthorized Distribution

BUY (1)

ESG SCORE: 58/100

Joshua Jennings, M.D. THE TD COWEN INSIGHT

646 562 1333

This morning, DXCM uncovered the theft of two lots of scrapped product, and identified

joshua.jennings@tdsecurities.com

Pharmasource as an unauthorized seller of the stolen sensors. We caught up with DXCM

Colin Clark IR following the release, who expects the financial impact to be immaterial. DXCM will

646 562 1441 support law enforcement's investigation, and immediately began working with FDA and other

colin.clark@tdsecurities.com

authorities to ensure patient safety.

John Rusch, CFA

646 562 1324 Financial Impacts to Be Immaterial

john.rusch@tdsecurities.com

This morning, DXCM disclosed that it identified two manufacturing lots of G7 sensors that had

Key Data been designated as scrap, but were stolen prior to destruction, and being sold into the market

Symbol NASDAQ: DXCM

by an unauthorized distributor. Importantly, these sensors had already failed internal quality

Market Cap $27.8B standards and were part the company's existing scrapping process, implying no elevation

in scrap rates (which was a headwind to 2025 margins). This incident will be treated as a

criminal matter, and while DXCM will support law enforcement's investigation, the process

should not drive incremental litigation expense.

No Adverse Events Have Yet Been Reported, and DXCM is Proactively Working to Ensure

Patient Safety

The company highlighted that the two affected lots carry specific performance and safety