DexCom and OURA Ink Partnership for Metabolic Health Innovation

DexCom DXCM, a leader in glucose biosensing systems, has announced a strategic partnership with OURA, the developer of a leading smart ring technology. The collaboration is aimed at revolutionizing metabolic health management by integrating DexCom’s glucose biosensor data with the biometric insights provided by the Oura Ring. The partnership will enable two-way data flow between DexCom glucose biosensors and apps and Oura Ring and the Oura App, and co-marketing efforts will help OURA and Dexcom reach millions of new users seeking better metabolic health.

The companies will also co-market and cross-sell each other’s products. The first app integration resulting from the partnership is expected to be launched in the first half of 2025.

DexCom is also funding a $75 million strategic investment in OURA’s Series D funding, valuing Oura at over $5 billion.

DexCom’s shares have lost 39.9% in the year-to-date period against 3.9% growth of the industry. The S&P 500 composite has risen 24.5% during the said time frame.

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The partnership focuses on delivering a more comprehensive picture of metabolic health. By combining glucose data with information on vital sign, sleep, stress, heart health and activity data collected by the Oura Ring, users can better understand how lifestyle choices impact their glucose levels. This integration promises to help individuals make informed decisions regarding diet, exercise and overall well-being.

DexCom believes that this powerful combination will attract new shared customers who want to better understand the link between activity, sleep, nutrition and glucose levels.

Dexcom’s continuous glucose monitoring (CGM) systems, known for their accuracy, have already transformed diabetes management. Their recent product, Stelo, launched in August, is a groundbreaking over-the-counter glucose biosensor, broadening accessibility beyond prescription-only users.

The Oura Ring tracks vital metrics, including sleep quality, activity levels, heart rate and stress. Its recently introduced “Meals” feature allows users to track the timing and impact of their food intake, aligning well with metabolic health goals. With more than 2.5 million units sold, OURA has established itself as a significant player in the wearable health tech market.

The two-way data integration between Dexcom and OURA products will enable users to correlate glucose levels with lifestyle behaviors. It will allow users to analyze how specific foods or activities impact their glucose and adjust their routines accordingly. Personalized insights will ensure the recommendations are tailored to individual responses, recognizing that people react differently to the same foods and activities.

Dexcom’s $75 million investment underscores this collaboration’s financial and strategic importance. Oura expects to double its annual sales to $500 million in 2024, showcasing the growing demand for its innovative solutions.

Per a report by MarketsandMarkets, the global digital diabetes management market size was valued at approximately $18.9 billion in 2023 and is expected to reach $35.8 billion by 2028 at a growth rate of 13.6%.

The market is being driven by escalating diabetes care solutions and technological developments that have made it possible to introduce highly adaptable solutions. Other significant drivers include the increasing popularity of connected devices and apps as well as the growing adoption of cloud-based solutions.

The partnership addresses a critical health challenge. Almost 88% of Americans are not in optimal metabolic health, increasing their risk of conditions like diabetes and heart disease. By combining Dexcom’s medical-grade biosensors with Oura’s advanced software, this collaboration aims to set a new standard in health monitoring, thereby driving potential for both companies.

DexCom, Inc. price | DexCom, Inc. Quote

Last month, DexCom concluded the third quarter of 2024 on a positive note, with earnings and revenues surpassing estimates. Key drivers included significant contributions from the Sensor segment and robust domestic and international revenue growth. The expansion of coverage for CGM systems during the quarter further supported growth, a trend expected to continue throughout 2024. The introduction of sensors like G6 and G7 in international markets also fueled revenue growth.

DexCom carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks from the medical industry are Masimo MASI, AngioDynamics ANGO and Globus Medical GMED.

Masimo, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated growth rate of 10.4% for 2025. You can see the complete list of today’s Zacks #1 Rank stocks here.

MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%. Masimo’s shares have risen 37.2% year to date compared with the industry’s 6.7% growth.

AngioDynamics, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 38.2% for 2025. ANGO’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 31.71%.

AngioDynamics’ shares have lost 8.9% year to date against the industry’s 6.7% growth.

Globus Medical, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 12.7%. GMED’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.1%. Its shares have risen 56.5% year to date compared with the industry’s 6.7% growth.

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