Abbott Laboratories stock jumped after the Food and Drug Administration approved the company's FreeStyle Libre glucose monitoring system, more than a year earlier than Wall Street anticipated.
While Abbott shares jumped 4 percent Wednesday after the surprise FDA call, competitor DexCom saw its shares crater by more than 36 percent.
Abbott's Libre is the first glucose monitoring system that adult diabetic patients can use to make treatment decisions without using a fingertip blood system. Analysts at J.P. Morgan say Abbott's aggressive distribution strategy has "the five largest pharmacies" ready to begin selling the device in the U.S. as early as December.
J.P. Morgan, which downgrades shares of DexCom to neutral from buy on the news, also said Abbott's pricing for the device is "even more aggressive than our expectations." Abbott will charge an effective rate of around $4 per day for Libre, lower than the $6 analysts at J.P. Morgan anticipated.