Dexcom Inc at JPMorgan Healthcare Conference (Virtual) Transcript

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

Question: Robert Justin Marcus - JPMorgan Chase & Co, Research Division - Analyst : Great. Thanks, Kevin. Lots to talk about there. So maybe let's start with the preannounced fourth quarter, and then we'll get into 2022 guidance here. So there were a lot of moving parts here in the quarter, I imagine. I'm sure U.S. looked a little different than outside the U.S. Maybe if you could give us a sense of how the geographic trends played out. And more importantly, I think to investors is this is one of the few times we've seen where DexCom hasn't significantly exceeded consensus estimates. Any one-timers or things under the hood we should be aware about?

Question: Robert Justin Marcus - JPMorgan Chase & Co, Research Division - Analyst : Well, maybe we could put a finer point on that. How much do you think is access to physicians? How much do you think there maybe patients waiting for G7 to come and don't want to start or get involved with the CGM ahead of the new technology launch? How much is maybe some other factor that I'm not thinking?

Question: Robert Justin Marcus - JPMorgan Chase & Co, Research Division - Analyst : So maybe how do I think about the percentage of your U.S. business that's now in pharmacy and Medicare as we think about trying to normalize these trends going forward? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 10, 2022 / 3:30PM, DXCM.OQ - Dexcom Inc at JPMorgan Healthcare Conference (Virtual)

Question: Robert Justin Marcus - JPMorgan Chase & Co, Research Division - Analyst : Got it. So maybe shifting, I want to save enough time to talk about G7, the data today and timing. But maybe before we get to that 2022 guidance, this is I believe, now your fifth year of 15% to 20% sales growth guidance to start the year off. How are you thinking of that in relationship to past guidance and the environment you're sitting here today? And how do we think about that cadence of growth? And is it more back-end loaded to think about G7 coming online?

Question: Robert Justin Marcus - JPMorgan Chase & Co, Research Division - Analyst : Got it. Turning to G7. As we think about it, I just want to make sure you were planning to submit in fourth quarter in the U.S. I want to confirm. And if you could give us a time on when that was submitted? And there was some language in the release this morning about navigating the environment in Europe. How do we think about where that approval sits right now? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 10, 2022 / 3:30PM, DXCM.OQ - Dexcom Inc at JPMorgan Healthcare Conference (Virtual)

Question: Robert Justin Marcus - JPMorgan Chase & Co, Research Division - Analyst : I think that all investors want you to be able to predict regulating bodies, but at the same time, it's a very tricky business to be in.

Question: Robert Justin Marcus - JPMorgan Chase & Co, Research Division - Analyst : So Kevin, I've always had this view that the glucose sensing market is large enough for, at a minimum, 2 players, and it's not an either/or game for you or Abbott. But I got to say, the data you had in the slides today was incredibly impressive, accurate amongst pediatrics and adults, and that's very difficult to do across all days, across all metrics. So how are you thinking about not just at this point share gains, but maybe competition and potential -- sorry, not just penetration for CGM, but also share gains at this point. There's a lot of Libre patients. Why would they remain on a Libre, given the accuracy of this product?

Question: Robert Justin Marcus - JPMorgan Chase & Co, Research Division - Analyst : Yes. Maybe to follow up and then there's a lot of we could talk about, including the reimburse -- or the guideline changes for basal insulin and the statement that's made there. But I want to focus on type 2 intensive in the U.S. and even nonintensive. And this is one area. We do doc calls and we hear Abbott came around a couple of years ago with disposable sensors and reimbursement is okay. And so there's just this good foothold that Abbott has been able to get, especially in primary care setting today. It's one area you've not focused on as much because you were growing so fast in other areas and sampling was difficult with the nondisposable transmitter. So as you think about the go forward, you've ramped up your direct-to-consumer spend. G7 will allow for much easier sampling. How are you thinking about the primary care and the type 2 intensive and nonintensive patient with G7 in the future?

Question: Robert Justin Marcus - JPMorgan Chase & Co, Research Division - Analyst : Great. Maybe with the last 2 minutes, there's a lot to touch on, obviously, but maybe you can spend the last few here just on the basal insulin opportunity. There is plus or minus 4 million patients in the U.S. from what I remember. That's about double the type 1 opportunity. It's now a Level A of evidence, I believe, in the latest guideline update. Reimbursement is the next step. How should we think about the timelines to move into that market and the rate and use case that exists there?

Question: Robert Justin Marcus - JPMorgan Chase & Co, Research Division - Analyst : Got it. Well, Kevin, Jereme, unfortunately, we have to stop it there, but thanks so much for your time today, and hope you have a great rest of the day.