How to Invest in the $111 Billion Diabetes Boom (DXCM, ATRX, TNDM, MNKD, NVO, LLY)

The global diabetes market was estimated at $25.9 billion in 2020 and is expected to reach $28.5 billion in 2021 according to Grand View Research. The global market for diabetes care products including drugs and devices is even more impressive. This larger category is expected to exceed $111.2 billion by 2027 according to iHealthcareAnalyst.com.

Why is diabetes such a booming market?

The answer is a bit depressing, but it is nonetheless critically important to address as a society using the impactful model of capitalism: diabetes is booming because developed world societies are seeing simultaneous growth in obesity and aging, and because emerging world societies are rapidly ascending toward developed world status, and beginning to evidence some of the same worrisome trends.

In any case, the diabetes market is an explosive growth opportunity for investors. As such, we take a look at a few of the more interesting opportunities in the space below, including some of their recent key catalysts.

DexCom, Inc. (NASDAQ:DXCM) is a medical device manufacturing company, which engages in the design, development and commercialization of glucose monitoring systems for ambulatory use by people with diabetes. DXCM bills itself as a company that empowers people to take control of diabetes through innovative continuous glucose monitoring (CGM) systems. 

Headquartered in San Diego, California in the United States, and with operations in Canada, Dexcom has emerged as a leader of diabetes care technology. Its products include Dexcom G6 CGM System, DexCom G6 CGM System for Medicare, Software and Mobile apps. 

DexCom, Inc. (NASDAQ:DXCM) recently announced that people with type 1 diabetes who are 25 years of age or under may now be eligible for provincial coverage of the Dexcom G6 CGM System through Manitoba Health and Seniors Care. The Dexcom G6 CGM System is now covered by Manitoba Health for people 25 years of age or under living with type 1 diabetes. (Photo: Business Wire)

“We are so pleased to see more and more provinces demonstrating their commitment to improving the health of people with diabetes. We know that when diabetes management is made easier through real-time CGM and data-sharing, the person living with diabetes and their entire circle of care can benefit,” says Laura Endres, Senior Vice President and General Manager of Dexcom Canada.

Even in light of this news, DXCM has had a rough past week of trading action, with shares sinking something like -4% in that time. That said, chart support is nearby, and we may be in the process of constructing a nice setup for some movement back the other way. 

DexCom, Inc. (NASDAQ:DXCM) managed to rope in revenues totaling $595.1M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 31.7%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($2.6B against $600.7M).

Adhera Therapeutics Inc (OTC US:ATRX) could be a bargain-basement opportunity with the potential to ascend toward a leadership position in the explosive diabetes space among publicly traded companies with exposure to this growing marketplace.

The company recently provided its shareholders with an update on its corporate strategy and planned clinical development of MLR-1019 (armesocarb) and MLR-1023 (tolimidone), which offers insight into the path ahead for this emerging small-cap biotech. On July 29 and August 24, respectively, the Company announced executing exclusive license agreements for MLR-1019 for Parkinson’s disease (PD) and MLR-1023 for Type 1 diabetes.

Adhera Therapeutics Inc (OTC US:ATRX) notes that MLR-1023, a lyn kinase activator, has demonstrated exceptional clinical safety and tolerability in over 700 patients in Phase 2a and Phase 2b clinical trials in patients with Type 2 diabetes. The Company will work under the IND of license partner Melior Pharmaceuticals to continue clinical development of MLR-1023, with a transition to Type 1 diabetes as the target indication. 

According to the company’s release, the decision to focus on Type 1 diabetes was supported by multiple factors, including compelling work by an independent investigator in Canada demonstrating the ability of MLR-1023 to confer unique benefits to pancreatic beta cell (insulin producing cells) in models of Type 1 diabetes, longer period of market exclusivity for Type 1 diabetes compared to Type 2 diabetes, blue sky opportunity for an oral Type 1 diabetes drug (market for oral Type 2 diabetes drugs is already crowded), and the fact that the cost to market is substantially lower for Type 1 diabetes compared to Type 2 diabetes.

“We are very pleased about the positioning of our company today with two Phase 2-ready drug candidates indicated for extremely large market opportunities, as existing therapeutics for PD and Type 1 diabetes are lacking,” commented Andrew Kucharchuk, Chief Executive Officer at Adhera Therapeutics. “We are particularly excited about the pivot to Type 1 diabetes, which we model to positive Net Present Value (NPV), versus a flat NPV for Type 2. Given the dearth of oral medications for Type 1 diabetes, we are optimistic that we will garner attention from institutions and potentially large pharma as we advance our clinical work of MLR-1023.”

Adhera Therapeutics Inc (OTC US:ATRX) also recently noted that it is beginning the process to graduate to OTC Markets’ OTCQB marketplace with the ultimate goal of a NASDAQ listing.

Tandem Diabetes Care Inc (NASDAQ:TNDM) Tandem Diabetes Care, Inc. engages in the design, development, and commercialization of products for people with insulin-dependent diabetes. 

Tandem Diabetes Care, Inc. (www.tandemdiabetes.com) is a medical device company dedicated to improving the lives of people with diabetes worldwide through relentless innovation and revolutionary customer experience. The Company takes an innovative, user-centric approach to the design, development, and commercialization of products for people with diabetes who use insulin. Tandem’s flagship product, the t:slim X2 insulin pump, is capable of remote software updates using a personal computer and features integrated continuous glucose monitoring. 

Tandem Diabetes Care Inc (NASDAQ:TNDM) recently reported financial results for the quarter ended June 30, 2021 and updated its sales guidance for the year ending December 31, 2021, including news that Worldwide pump shipments increased 81 percent to 33,817 pumps from 18,687 pumps, Sales increased 58 percent to $172.1 million from $109.2 million, and Gross margin improved to 54 percent of sales from 50 percent of sales.

“We achieved record-high sales in the second quarter by expanding and further penetrating the U.S. insulin pump market, and through the rapid uptake of our technology internationally where our business opportunity is still in its early stages,” said John Sheridan, president and chief executive officer. “Our worldwide installed base is now nearly 270,000 people, and we are on track to achieve our goal of bringing the benefits of our technology to more than half a million customers by year-end 2024.”

Even in light of this news, TNDM has had a rough past week of trading action, with shares sinking something like -3% in that time. That said, chart support is nearby, and we may be in the process of constructing a nice setup for some movement back the other way. 

Tandem Diabetes Care Inc (NASDAQ:TNDM) managed to rope in revenues totaling $172.1M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 57.6%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($545.3M against $108.7M).

Other key stocks in the diabetes space include DexCom, Inc. (NASDAQ:DXCM), Tandem Diabetes Care Inc (NASDAQ:TNDM), MannKind Corporation (NASDAQ:MNKD), Novo Nordisk A/S (NYSE:NVO), Eli Lilly And Co (NYSE:LLY), and Adhera Therapeutics Inc (OTC US:ATRX).

Please make sure to read and completely understand our disclaimer at https://www.wallstreetpr.com/disclaimer. We may be compensated for posting this content on our website by EDM Media LLC. For questions, comments or suggestions please contact ir@edm.media.

Published by Benjamin Roussey

Benjamin Roussey is from Sacramento, California. He has two master’s degrees and served four years in the U.S. Navy. His bachelor’s degree is from CSUS (1999) where he was on a baseball pitching scholarship. His second master’s degree is an MBA in Global Management from the University of Phoenix (2006). He has worked for small businesses, public agencies, and large corporations. He has lived in Korea and Saudi Arabia where he was an ESL instructor. Benjamin spends his time in between Northern California and Cabo San Lucas, Mexico, committing himself to his craft of freelance and website writing. http://www.facebook.com/ben.rouss

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