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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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  "pageNumber": 62,
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  "notes": "Uses a 'CEO quote contradiction' framework to contrast past management statements with current market realities.",
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      "kind": "callout",
      "text": "Dexcom's growth outlook beyond 2020 depends critically on its ability to come to market with its down-market CGM after years of failure.",
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      "text": "If Dexcom hasn't found a way to sell a competitively-priced down-market CGM profitably after nearly five years of development, we wonder if it will ever find a way to do so, and whether it faces fundamental scale limitations versus Abbott as a one-product company.",
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      "kind": "metric",
      "text": "Annual Sensor Spend: $4,246.05",
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      "kind": "paragraph",
      "text": "From management's language on the 2015 call on which it first announced its Verily partnership, it is clear that Dexcom was well-aware that, at its current price point, the G-Series priced out virtually all potential CGM users outside of its core market...",
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      "kind": "paragraph",
      "text": "Management also admitted that it would have to \"develop economics\" around producing a low-cost CGM... If Dexcom hasn't found a way to sell a competitively-priced down-market CGM profitably... we wonder if it will ever find a way to do so.",
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      "kind": "quote",
      "text": "\"We can't see selling, for example, our current hardware configuration of the starter kit, at an ASP of $850... So the configuration needs to be easy to use, it needs to be small, it needs to be disposable and it needs to be inexpensive.\"",
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      "kind": "quote",
      "text": "\"We can't see selling, for example, our current hardware configuration of the starter kit, at an ASP of $850 to a broad population of patients who aren't going to wear it each and every single day. So the configuration needs to be easy to use, it needs to be small, it needs to be disposable and it needs to be inexpensive. We are not going to go in and charge people $200, $300 for a two week sensor session, so we have to develop economics around that.\" — Kevin Sayer – President & CEO, Dexcom",
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      "kind": "table",
      "text": "Relative CGM Feature Comparison: G6 vs FreeStyle Libre",
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      "text": "Daily and Annual Sensor Spend comparison",
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      "kind": "title",
      "text": "Dexcom Knows That It Can't Play Outside Its Core Market At Its Current Price Point",
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