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  "documentTitle": "Dexcom, Inc. (DXCM)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2019-03-21 00:00:00",
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  "notes": "The slide uses a bar chart to illustrate a 'price war' scenario where Dexcom's margins turn negative at lower revenue points compared to Abbott.",
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      "text": "Abbott's Libre pricing is currently set such that it generates $2.04 in revenue per patient per day on CGM sensors, and it does not require patients to purchase additional transmitters. Dexcom is already in a position to face tremendous pressure on gross profit.",
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      "text": "Abbott has the capacity to cut prices to a point at which Dexcom's economics would be devastated",
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      "text": "Gross Margin Sensitivity To Sensor And Transmitter Revenue",
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      "text": "If the G6 and Libre 2 are viewed as substitute or near-substitute products by consumers, Abbott could put tremendous pressure on Dexcom's gross profit while maintaining a comfortable level of profitability on the sale of its Libre 2 CGM.",
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      "text": "If consumers treat the G6 and Libre 2 as near-perfect substitutes, could the one-product Dexcom survive as a viable business amidst a vigorous price war, or as competitive dynamics naturally drive down industry pricing?",
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