DexCom shares plunge after FDA seeks more data on products

By Rajarshi Basu and Krishnakali Sengupta

BANGALORE, Nov 5 (BestGrowthStock) – Shares of DexCom Inc (DXCM.O: )
fell as much as 29 percent on Friday, a day after the company
said the U.S. health regulator had asked for additional data
related to four of its products awaiting approval.

“The regulatory delays will impact the timing of milestone
payments from the company’s strategic partners, which may
result in DexCom needing to raise additional capital to fund
the business,” Wiliam Blair & Co analyst Ben Andrew said.

Also, Wedbush Pacgrow Lifesciences analyst Richard Lau
feels that the current uncertainties could delay the approval
of the products till the first quarter of 2012.

On a conference call with analysts Thursday, the company
said the U.S. Food and Drug Administration had requested more
data as well some clinical trials to support the approval of
its Gen4 sensor, integrated insulin pumps and an intensive care
unit system.

The company partners with Animas, a unit of Johnson &
Johnson (JNJ.N: ) and Insulet Corp (PODD.O: ) for its insulin
pumps, and with Edwards Lifesciences (EW.N: ) for its intensive
care unit system.

However, William Blair’s Andrew believes the company will
be able to raise any additional cash if needed.

As of Sept. 30, the company had $31.8 million in cash,
marketable securities and restricted cash

Shares of the San Diego, California-based company, which
have gained about 20 percent since its last quarterly results
in August, were down 22 percent at $10.81 Friday afternoon on
Nasdaq. They touched a low of $9.91 earlier in the day.
(Reporting by Rajarshi Basu and Krishnakali Sengupta in
Bangalore; Editing by Unnikrishnan Nair)

DexCom shares plunge after FDA seeks more data on products