DexCom Discovers G7 Sensors Stolen and Sold
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
DexCom announced through ongoing quality and accounting reviews it recently identified certain lots of Dexcom G7 sensors originally designated as scrap and intended for destruction were stolen during the destruction process, then sold by third parties. Scrapping limited amounts of sensors that do not meet Dexcom standards is a routine part of the company's quality control process. Sensors identified as scrap are sent to a third-party vendor for destruction and recycling. At this time, Dexcom has identified two lots of Dexcom G7 sensors that were stolen, sold and used by some customers. Dexcom traced sales of this stolen product back to Pharmsource, who is not an authorized Dexcom distributor but supplies some independent pharmacies and DME distributors in the United States. Pharmacies that purchased product from Pharmsource should take extra care to review their inventory. Dexcom is notifying customers directly across numerous communication channels. This issue primarily impacts the US, therefore communication to US customers will precede communication to OUS customers.
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Analyst Views on DXCM
Wall Street analysts forecast DXCM stock price to rise
16 Analyst Rating
13 Buy
2 Hold
1 Sell
Strong Buy
Current: 72.340
Low
68.00
Averages
82.54
High
100.00
Current: 72.340
Low
68.00
Averages
82.54
High
100.00
About DXCM
DexCom, Inc. is a medical device company. The Company is primarily focused on the design, development, and commercialization of continuous glucose monitoring (CGM), systems for the management of diabetes and metabolic health by patients, caregivers, and clinicians. It enables people to take control of health through innovative biosensing technology. The G7 is an integrated continuous glucose monitoring system. Stelo is designed specifically for people with type II diabetes who do not use insulin as the first over-the-counter glucose biosensor in the United States. The Dexcom Share remote monitoring system, offered for use with any Dexcom system, uses an app on the patient’s compatible mobile device. Its Dexcom G7 is for adults and children (2+ years) living with type I or type II diabetes who are on any insulin or medications, at risk of hypoglycemia, and those with gestational diabetes. The G7 and G7 15 Day includes finger stick elimination, continuous glucose readings and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Testing Failure Rate: An elevated internal testing failure rate in one of the lots may result in no sensor readings, raising further concerns about patient safety and potentially impacting future sales and market share.
- Supply Chain Alert: DexCom has warned vendors who purchased devices from Pharmsource LLC, emphasizing the company's commitment to product safety while notifying affected customers to mitigate potential legal liabilities.
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See More
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- Unauthorized Distributor: The investigation revealed that the stolen sensors were sold through Pharmsource, LLC, a non-authorized distributor supplying independent pharmacies and durable medical equipment distributors, potentially damaging the brand's reputation.
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See More
