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  "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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  "notes": "The table highlights a scenario where Abbott maintains profitability at lower price points while Dexcom's margins turn negative.",
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      "text": "At an average sensor and transmitter revenue per patient per day of $2.00 – close to the Libre’s current level of $2.04 – Abbott would realize a gross margin of 59% on the Libre 2 (vs. our estimate of 60% today), while Dexcom would realize a gross margin of -7% on the G6 (vs. our estimate of 70% today).",
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      "text": "gross margin: -7%",
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      "text": "Abbott's economies of scale in production are such that it can undercut Dexcom's pricing while still earning a comfortable profit on its CGMs. At an average sensor and transmitter revenue per patient per day of $2.00 – close to the Libre's current level of $2.04 – Abbott would realize a gross margin of 59% on the Libre 2 (vs. our estimate of 60% today), while Dexcom would realize a gross margin of -7% on the G6 (vs. our estimate of 70% today). We believe that, if Abbott and Dexcom were to engage in a price war, or if Dexcom's narrowed technological advantage naturally lends to downward pricing pressure, the economics behind Dexcom's one-product business model could completely unravel.",
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      "text": "Comparison table of Dexcom G6 vs Abbott Libre 2 across four price scenarios ($4, $3, $2, $1 per day).",
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      "text": "Abbott Could Comfortably Maintain CGM Profitability Amidst A Price War With Dexcom",
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