DexCom, Inc. (DXCM) has joined forces with RxFood Corporation, a leading company in the medical nutrition therapy sector, to introduce an advanced digital health solution for individuals with diabetes. This collaboration aims to provide improved services, currently available in Canada.
RxFood utilizes powerful Artificial Intelligence models to assess and recommend dietary choices by analyzing images of consumed foods. The company aims to offer personalized nutrition and promote the concept of food as medicine.
The RxFood app has undergone testing primarily on families with diabetic children, showcasing the app’s ability to reduce the time and effort associated with daily diabetes management. By providing more accurate and detailed food records compared to manual entries, the app enables clinicians to offer personalized care recommendations.
DexCom’s stock has experienced a 21.7% decline year to date, while the industry has seen an 8.9% decrease. In contrast, the S&P 500 has grown by 14.2% during the same period.
Significance of the Collaboration
DexCom is a leader in diabetes care technology, known for its cutting-edge continuous glucose monitoring (CGM) systems such as G6 and G7. By integrating RxFood’s image-recognition technology, DexCom aims to introduce automatic food and nutrition tracking for its CGM users.
The partnership aims to provide unified reports by combining time-matched food and glucose data, enabling personalized nutritional guidance at scale. The combined system will be available to Canadians with diabetes following the commercial launch of Dexcom G6 CGM system or the Dexcom G7 CGM system.
DexCom has also partnered with automated insulin delivery companies such as Insulet Corporation’s PODD, with the goal of creating a comprehensive ecosystem for seamless diabetes management through glucose monitoring, dietary assessment, and insulin delivery.
In Germany, DexCom’s G6 CGM system can now connect with Insulet Corporation’s Omnipod 5 Automated Insulin Delivery (AID) system. This system automatically adjusts insulin delivery and manages glucose levels for individuals with type 1 diabetes aged two years and above.
Health Canada has approved DexCom’s next-generation G7 CGM system for individuals with all types of diabetes aged two years and above. The DexCom G7 builds upon the success of its CGM technology, which has been clinically proven to improve glucose control, reduce hypoglycemia, and increase time spent in the target range.
Zacks Rank & Other Key Picks
DexCom currently holds a Zacks Rank #2 (Buy). Other top-ranked stocks in the medical sector include Align Technology (ALGN) and McKesson Corporation (MCK).
Align Technology, also ranked #2, has an estimated long-term growth rate of 17.5%. McKesson, another #2 ranked stock, has an estimated long-term growth rate of 10.7%. Both companies have consistently outperformed earnings estimates.
Just Released: Zacks Top 10 Stocks for 2023
Looking for more investment ideas? Download the Zacks Top 10 Stocks for 2023, a portfolio that has outperformed the market, gaining +884.5% compared to the S&P 500’s +287.4% since 2012. Explore handpicked stocks that are poised for success in 2023.
Stay up-to-date with the latest recommendations from Zacks Investment Research with their free report featuring the 7 Best Stocks for the Next 30 Days.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the official position of Nasdaq, Inc.