Dexcom CEO teases a diabetes collaboration with Apple Watch
- Dexcom CEO Kevin Sayer says its G6 upgrade for the Apple Watch will be a "great for people with diabetes."
- A separate collaboration with Alphabet-subsidiary Verily will also be a device "for the ages," he says.
- The medical device company wants to expand its relationships with Walgreens and CVS to "get the product to the patient where they can use it,' he says.
Dexcom will launch a number of upgrades for its G6 diabetes system over the next year, including its direct-to-Apple Watch version, CEO Kevin Sayer said Thursday.
Apple CEO Tim Cook earlier this year said he wanted to leave a mark on the health care industry under his tenure at the iconic technology giant. The collaboration between the two companies would allow diabetes patients to track glucose on Apple's top wearable device.
"It's coming," Sayer said in a sit-down interview with Jim Cramer on "Mad Money." "And this tool is great for people with diabetes."
The medical device manufacturer, which produces glucose monitoring systems, is also working on other iterations of the G6 alongside development of the G7 system in collaboration with life sciences researcher Verily. Verily is a subsidiary of Google-parent Alphabet.
"It takes a CGM [continuous glucose monitor] and makes it much smaller," Sayer said. "It really will be a device, we think, for the ages and a platform forever. It's going to be wonderful."
Dexcom is also partnering with Walgreens. The company also plans to work with CVS ahead of its pending merger with Aetna.
"We want to be where our patients want to be met, not in our plant or not some place else," Sayer said. "[We want to] get the product to the patient where they can use it."
Dexcom grew revenue by 52% year over year during the first quarter of 2019, according to its most recent earnings report. Revenue was above $280 million during the period.
Dexcom plans to release its G6 system to the Medicare market where it can build more capacity, he added. More than 8 million people in the United States and Europe are on insulin therapy, Sayer said.
"I assure you there is plenty of room for us to grow over the long term," Sayer said.
Shares of Dexcom climbed 0.72% on Thursday to close at $146.32. The stock is off about $10 from its February highs, but has run up more than 22% in 2019 and nearly 50% in the past year.
WATCH: Cramer chats with Dexcom CEO Kevin Sayer
Disclosure: Cramer's charitable trust owns shares of CVS, Alphabet, and Apple.
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