Senseonics Holdings
Senseonics Holdings Inc (NYSEMKT: SENS) is a medical technology company that designs and develops continuous glucose monitoring systems for people with diabetes. These systems include a mobile application that provides real-time diabetes management. The company’s latest implant, Eversense 3, has been approved for coverage by a large insurer, Blue Cross Blue Shield of Florida. The device lasts for six months and is minimally invasive. Senseonics plans to sell these systems globally through its partner.
The diabetes market is estimated to be $8 billion per year. It is dominated by Dexcom, Abbott Laboratories, and Medtronic. Senseonics has the opportunity to capture a share from the larger CGM leaders. The company has developed an implantable system that can last up to six months and has the potential to be wirelessly integrated with other insulin pumps. This new system could make it easier for many diabetes patients to better manage their health. The company has also partnered with Ascensia Diabetes Care to market its products.
Senseonics Holdings stock has had a lot of positive developments in recent months. The company’s stock has surged 500% in the past month and was one of the most popular stocks on Robinhood. However, there are still a number of ways for the company to improve before it can start generating commercial success. If Senseonics can get the 180-day Eversense diabetes monitoring product approved, the stock will likely shift from neutral to positive. The company’s management guidance is for 2022 revenue of around $16 million. Its shares have been trading at a sales multiple of 35x. While these figures seem high, the company has a transformative positioning for its CGM systems. Its target market includes dissatisfied patients of its competitors. The company is also targeting the new CGM user.
The company’s next-generation implant will likely have features like multi-way transmitters and wireless integration with insulin pumps. This will allow it to reach a broader population of diabetics and offer an alternative to traditional glucose monitors. The newest device may also include functionality for third-party health monitoring apps. If this system can be made affordable, it may be a great tool for people with diabetes to keep track of their blood glucose levels. The next-generation device will have to pass an FDA safety review before it can be sold in the U.S.
The company is preparing to launch its new Eversense CGM system in the global market. The device will include a small micro-needle to attach the sensor to the patient’s body. The device can then be calibrated daily and changed weekly. It is also designed to be a longer-lasting option, which means it will be compatible with Medicare Physicians’ fee schedule. The company’s goal is to gain market share from its larger competitors. The company is expected to reach $46 million in sales in 2024.
The company’s revenue is primarily generated outside the United States. Although it is a highly speculative stock, the upside potential is there. Its current market cap is $550 million. If the company can continue to grow and launch its Eversense CGM system worldwide, it will be in a very strong position.