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  "docSlug": "34401c2968d1",
  "documentTitle": "Dexcom, Inc. (DXCM)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-03-21 00:00:00",
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  "pageNumber": 35,
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  "notes": "The slide uses a red arrow to visually link the 'Average Sensor & Transmitter Revenue per Patient per Day' from the consensus table to the 'At Par With Libre' scenario.",
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      "kind": "callout",
      "text": "If, in order to maintain market share, Dexcom is forced to slash sensor and transmitter prices to achieve parity with the Libre's daily cost of use to the payor, the Company's gross profit would be wiped out in its entirety, even if revenue from up-front receiver purchases were to hold steady.",
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      "text": "gross margin: -6%",
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      "text": "Consensus estimates imply that Dexcom is expected to generate $7.73 in combined sensor and transmitter revenue per patient per day in FY19. Recall from the previous slide that Abbott generates $2.04 in sensor revenue per patient per day, and that the Libre does not require the purchase of separate transmitters. If Dexcom were to reduce sensor and transmitter prices such that its combined sensor & transmitter revenue per patient per day was on par with that of the Libre, FY19 gross profit would be slashed from $798M to ($22M), and gross margin from 66% to -6%.",
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      "text": "Comparison of FY19 Consensus vs At Par With Libre financial metrics.",
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      "text": "Pricing At Par With Libre Would Erase 75% Of Dexcom Revenue And All Gross Profit",
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