Industry analysts are insisting that new weight loss and diabetes drugs like Ozempic won't hurt the demand for insulin pumps and continuous glucose monitors, but most investors aren't buying it.
mountain In the quarter to date, Dexcom shares are down nearly 19%. Headline risk is real The latest pressure on the stocks came from a New England Journal of Medicine report on Thursday that detailed a study of newly diagnosed patients with type 1 diabetes who reduced their need for insulin after taking semaglutide. Insulet , which makes insulin pumps, was particularly hard hit by the news. The stock continued its downward trend Friday, and is off about 10% this week.
mountain Insulet shares over the past three months The article's findings are "highly unlikely" to hurt sales of continuous glucose monitors or insulin pumps, Piper Sandler analyst Matt O'Brien wrote in a research note Thursday.
mountain Tandem Diabetes shares have fallen significantly this year. Dr. Paresh Dandona, of the Jacobs School of Medicine and Biomedical Sciences at the University of Buffalo, led the study. In a news release, he said the findings are "promising," and support plans to conduct further research with a larger group of participants over a longer time period.