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  "documentTitle": "Dexcom, Inc. (DXCM)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-03-21 00:00:00",
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  "notes": "The slide highlights the discrepancy between company guidance and the analyst's bearish scenario.",
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      "text": "Should Dexcom set its CGM sensor + transmitter prices on par with Libre's sensor prices through the next three years without improving its cost efficiencies, the Company may be able to continue to grow its patient base at a steady rate as it participates in the T2 market , but growth would be slowed to a ~3% CAGR over the next five years, with annual growth shrinking by the year as prices fall back.",
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      "text": "Gross Margin: 34.9%",
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      "text": "Should Dexcom set its CGM sensor + transmitter prices on par with Libre's sensor prices through the next three years without improving its cost efficiencies, the Company may be able to continue to grow its patient base at a steady rate as it participates in the T2 market , but growth would be slowed to a ~3% CAGR over the next five years, with annual growth shrinking by the year as prices fall back. Note, however, that this case does not capture the near-term growth risk that we anticipate under more realistic circumstances, in which Dexcom keeps G6 prices largely steady while waiting for the delayed G7 to hit the T2 market.",
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      "text": "Source: Spruce Point Research. 1. Dexcom issued long term guidance at their investor day on December 4, 2018. We assume the midpoint of its revenue guidance of $2B to $2.5B in 2023 and 65% gross margins",
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      "text": "Historical, DXCM LT Guidance, and Spruce Point Estimate revenue model tables.",
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      "kind": "title",
      "text": "Case Study: Dexcom Sets Price On Par With Libre Over Time Amidst Price War",
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