A leading manufacturer of automated insulin delivery systems, Dexcom (NASDAQ:DXCM) signed a five-year collaboration agreement with the University of Virginia on Thursday . The company will fund research at the university that could expand its addressable patient population.
Dexcom already has clinical trial evidence that shows its constant glucose monitoring (CGM) technology reduces the amount of time Type 1 diabetes patients spend with blood sugar levels that are too high or too low. Through its collaboration with the university, the company will test its CGM technology for use among people with Type 2 and gestational diabetes, as well as for hospitalized patients.
The University of Virginia's Center for Diabetes Technology will lead the research efforts, but the collaboration will employ experts from multiple disciplines across the University of Virginia System.
This isn't the first time these two have conducted research as partners. In 2019, the collaboration partners presented successful results of a trial with Type 1 diabetes patients that used Dexcom's CGM technology to control their blood sugar levels.
In 2020, Dexcom expects revenue to grow by about 25% to around $1.85 billion. While there has been some uptake of Dexcom's CGM systems among insulin-dependent Type 2 patients, the relative lack of evidence of a benefit is severely limiting the company's total revenue.
In 2017, the American Diabetes Association estimated the number of Type 1 diabetes cases in the U.S. at 1.3 million. In 2012, it estimated the number of Type 2 diabetes patients at 27.8 million.