Dexcom Inc at JPMorgan Healthcare Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Robbie Marcus - J.P. Morgan Securities LLC - Analyst : Lots to talk about there. Maybe we could start with fourth quarter. You put up, I believe, it was a $17 million beat versus the Street, ended the year above the range you provided. Any color you could talk about in fourth quarter about maybe some of the important trends that happened through the year, whether it was DME or pharmacy and the relationships there?

Question: Robbie Marcus - J.P. Morgan Securities LLC - Analyst : You added about 300,000 patients in the second half of the year versus the update you gave in 2Q. I just want to make sure. That doesn't include the Stelo number, right?

Question: Robbie Marcus - J.P. Morgan Securities LLC - Analyst : Yes, that's a really impressive fourth quarter there. Maybe we could talk about that type 2. There's a couple of updates there. There is the commercial plan coverage, and there is also the announcement of a trial for the first time. So maybe talk about the conviction that these payers had and why you feel like they did it now and who that trial is really targeting and then when we might see that data and potential updates?

Question: Robbie Marcus - J.P. Morgan Securities LLC - Analyst : Maybe we could touch on the 15-day. You submitted that. I think the announcement was some time before the third-quarter earnings call. So typically, a 90-day approval window. We should get that sometime in the beginning of 2025. What's the, I guess, the gap from approval to launch? And I remember with G6, it took a couple of months to get a lot of the insurance plans on formulary. Is it more just you want to wait until you have critical mass until going out?

Question: Robbie Marcus - J.P. Morgan Securities LLC - Analyst : It is really important, more in Jereme's world, as you move down the P&L since you're scaling a 15-day sensor over basically the same cost base of a 10-day sensor. So how should we think about how that flows through in the gross margins and operating margins in 2025? And then I know it's a multi-year process to get integrated with your pump partners, get outside the US, et cetera. How do we think about how long it might be before we ultimately see it fully integrated in the P&L?

Question: Robbie Marcus - J.P. Morgan Securities LLC - Analyst : Great. There was a one-time issue with gross margin in fourth quarter. Is that now fully resolved as we move into 2025?

Question: Robbie Marcus - J.P. Morgan Securities LLC - Analyst : Great. Kevin, maybe I could circle back. I know you put a ton of personal time and effort and focus into DME relationships in 2024. How do you feel about that aspect of the business going into 2025?

Question: Robbie Marcus - J.P. Morgan Securities LLC - Analyst : What about Stelo? If I can envision a world in a couple of years from now where you have insurance coverage for your 15-day G-Series for non-intensive type 2s, how does Stelo fit in the picture? And is this, in your view, maybe just a temporary product? Or is this a long-term durable product?

Question: Robbie Marcus - J.P. Morgan Securities LLC - Analyst : I appreciate the great charts in terms of the different addressable markets and the penetration rates. It's really helpful. I would imagine if you put up the biggest unpenetrated population, though it's outside the US patients. So it's an area -- we're generally US-centric here, but it's the largest addressable market that isn't using CGM right now. What are some of the near-term opportunities, whether it's better reimbursement or new markets you're entering that we can look forward to for CGM outside the US?

Question: Robbie Marcus - J.P. Morgan Securities LLC - Analyst : Yes. Just about out of time, but I wanted to ask one question here. In the US and pretty much outside the US, it's been a two-player market. You have huge barriers to entry, manufacturing being just one of them. How do you feel about Dexcom's position over the long run as it relates to competition?

Question: Robbie Marcus - J.P. Morgan Securities LLC - Analyst : Great. Well, we're out of time. Thank you very much for joining. Thanks, everybody, for attending.