Structural tailwinds + category leadership = long runway for growth for this glucose monitoring company

If you’re searching for a structural growth story in the global equity markets - one with secular tailwinds, powerful healthcare economics, and a best-in-class operator at the helm - you would do well to look at Dexcom (NASDAQ: DXCM). This is a company not just riding a trend, but shaping the future of chronic disease management. And here's why:

A Global Health Crisis Is Accelerating Demand

Type 2 diabetes is not just a public health challenge, it’s a public health epidemic.

• 38.4 million Americans already live with Type 2 diabetes, and that number is climbing rapidly.

• An additional 100+ million Americans are either undiagnosed or prediabetic.

• Globally, the prevalence of diabetes is surging across both developed and emerging economies.

This epidemic is creating massive strain on healthcare systems, and yet the standard care model remains reactive, fragmented, and inefficient. The future of diabetes management is real-time, personalized, and tech-enabled. That’s Dexcom’s lane.

Why CGM Is the Answer and Where Dexcom Is Winning

Continuous glucose monitoring (CGM) is shifting from a niche product for Type 1 diabetics to a mainstream tool for anyone with glucose dysfunction, including Type 2 and even prediabetics.

Healthcare professionals are responding accordingly:

• 96% of U.S. physicians now agree CGM should be standard of care for people on multiple daily insulin injections.

• 94% support CGM for patients on basal insulin, and over half advocate CGM for those using oral medication or lifestyle changes alone.

More strikingly, 59% of healthcare professionals believe CGM will have the most positive impact on Type 2 care over the next decade, outranking both new drugs and diet education.

CGM is no longer a nice-to-have. Rather it is becoming a clinical and behavioral imperative.

Dexcom’s Competitive Moat Is Expanding

There are other CGM players, but no one else is as focussed on this space as Dexcom.

• 25+ years of pioneering CGM innovation, building trust with physicians and patients alike.

• The launch of Stelo, which is the first CGM biosensor approved for use without a prescription. This opens up the enormous non-insulin and prediabetic market.

• As of 2025, all three major U.S. pharmacy benefit managers now reimburse Dexcom CGM for any diabetes diagnosis.

• Cuts hospitalizations by 50%, based on real-world claims data.

• Enhances outcomes even further when combined with GLP-1s, which are becoming a mainstay in Type 2 treatment.

Clinical validation + behavioral impact + system cost savings = a winning formula for Dexcom.

The Right Business at the Right Time

Healthcare is being transformed by personalized, real-time data. Dexcom is leading that transformation in one of the world’s biggest and fastest-growing chronic disease categories.

The opportunity became particularly compelling during last year’s drawdown, triggered by a disappointing 2Q result. Since then, Dexcom has reported three consecutive quarters of strong execution, demonstrating that the business is firmly back on track. Yet, due to the market’s short-term focus, the stock continues to trade at a discount to its historical valuation. 

This is not a short-term trade. Rather it is a multi-year compounder with durable pricing power, rapidly expanding TAM, category leadership, and growing tailwinds from policy, payer, and patient behavior. It’s rare to see all of those line up in one business.

Dexcom is a company you own when you're thinking not in quarters and years, but in business cycles and decades. Dexcom remains one of the larger holdings in the Cordis Global Medical Technology Fund.

Visit our website to learn more about the Cordis Global Medical Technology Fund and our investment strategy.