JPM26: Dexcom’s new CEO outlines approach to stop a repeat of G7 supply shortage

In his inaugural J.P. Morgan Healthcare Conference speech, newly minted Dexcom CEO Jake Leach looked to ease concerns over last year’s supply shortage of the company’s leading diabetes product.

Leach told investors in San Francisco Monday morning: “It’s important that we learn from the different challenges we’ve had over time,” an indirect nod to the supply issues the company has faced.

This has been specific to Dexcom’s G7 sensor, its wearable continuous glucose monitoring device for diabetes patients to help them keep watch on their sugar levels.

But, early last year, Dexcom announced it was “experiencing temporary delays in our supply chain which may lead to some pharmacies or DME distributors being on a backorder.”

Dexcom has “spent a good amount of time investing in our supply chain,” Leach said at JPM, touting the company’s “strong infrastructure and resilience” to serve its customers.

“We’ve made significant updates to our quality management systems and test procedures,” Leach said at JPM. “We’ve [also] reorganized our teams, and we’ve brought in new talent and I’m very proud of how the teams have responded to this charge to enhance everything about the quality of our product [and] the quality of our service.”

One of the lessons Dexcom has learned is that both “our current and future supply suppliers are absolutely key when it comes to scale, and we continue to invest more,” the CEO said.

The medtech also announced preliminary, unaudited results for the fourth quarter, with sales hitting $1.26 billion, up 13% year over year.

It added that U.S. revenue “is expected to be approximately $892 million, representing growth of 11% over the fourth quarter of 2024.” For fiscal 2025, the preliminary total is around $4.66 billion, up 16% on 2024.

The company ended Monday with its shares up 5.3%.