Edwards and Dexcom to develop CGM for Hospital Use
In news announced recently, Edwards Lifesciences is establishing a relationship with Dexcom to develop CGM devices for use in hospital.Dexcom has mentioned this possible market in presentations over the last year, so this was an expected market development for them.
Edwards Lifesciences will pay an upfront fee of $13 million and follow up with further payments for product development based on meeting regulatory milestones.
Dexcom's CEO has talked about a standalone Intensive Care Unit monitor in the past for in hospital use. But they also realize that the ICU is a crowded spaces and integrating the Dexcom system into existing equipment is important for product acceptance.In intensive care, stress and other conditions means that patients' blood sugar control is often bad, even when they don't have diabetes. Tight glucose control leads to a faster recovery and better wound healing., leading to reduced costs and improved outcomes for patients. Currently about 25% of ICUs will try to do this using 12-24 fingersticks per 24 hours which costs a lot and keeps ICU staff busy. Using a CGM with programmable alarms leaves them with more time to care for patients.
In this agreement Edwards is responsible for sales and marketing. Given they already have a sales staff focused on the ICU market, this would be much more effective than growing an appropriate in-house staff at Dexcom. In return, Dexcom will receive a royalty of up to 7%.
For those of us, like myself, with Dexcom shares this might ultimately boost the share price which has been down substantially for some time now.
Labels: Dexcom, Edwards Lifesciences, ICU
posted by Bernard @ 8:50 PM
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