European officials approved Dexcom's newest body-worn diabetes device on Monday, leading Dexcom stock to surge closer to its 50-day line.
The company can now launch its new continuous glucose monitor in Europe. The device is allowed for people ages 2 and older. It's called G7 and tracks a diabetic patient's blood sugar in real time. Officials gave it a CE Mark, signifying it has passed all regulatory standards in Europe.
Dexcom Chief Executive Kevin Sayer says the new device provides more glucose data on one screen. The device was designed in partnership with Alphabet's Verily Life Sciences. It's 60% smaller and has a redesigned mobile app.
"Dexcom G7 takes everything people love about G6 and makes it even better," Sayer said in a written statement.
On the stock market today, Dexcom stock jumped 4.4% to 407.29.
Dexcom Stock: Approval Follows Pandemic Delay
Continuous glucose monitors are primarily used by patients with Type 1 diabetes. These patients don't make enough insulin on their own. They require insulin shots or pumps. But there's a growing market among patients with Type 2 diabetes, which is progressive.
Further, there's a chance for pregnant women to use CGMs. In Europe, the G7 also gained approval in the latter group. The approval sparked Dexcom stock Monday.
The approval in Europe follows a 2020-21 delay due to the Covid pandemic. In January, CEO Sayer told Investor's Business Daily that he expected the G7 to launch this year in Europe and the U.S. He noted Dexcom added revenue in 2020-21, despite the delay and pandemic.
"We haven't missed a beat," he said. "Our G7 submission was delayed a little bit because we couldn't run the clinical study we needed. But we have plowed through and put ourselves in a wonderful position and I don't think that (message) should be lost."
But Dexcom stock is under pressure this year after peaking in November. Shares have fallen off since, echoing a similar downfall for the broader Medical-Products industry group.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
