Dexcom tumbles after Abbott receives Medicare approval for Libre

Dexcom falls after Abbott receives Medicare approval for Libre

Dexcom tumbles on Bigfoot news. See Stockwinners.com Market Radar
Dexcom falls after Abbott receives Medicare approval for Libre

Shares of Dexcom (DXCM) are sinking after Abbott (ABT) announced that FreeStyle Libre, its new continuous glucose monitoring system, is now available to Medicare patients.

ABBOTT ANNOUNCES MEDICARE COVERAGE

This morning, Abbott announced that the FreeStyle Libre System, the company’s new continuous glucose monitoring system, is now available to Medicare patients, having met the codes for therapeutic CGM systems used for coverage by the U.S. Centers for Medicare & Medicaid Services.

Coverage includes all Medicare patients with diabetes who use insulin and who meet the eligibility criteria.

Abbott said that the factory-calibrated FreeStyle Libre system is the only CGM system recognized by Medicare that requires no user calibration whatsoever and also does not require the need for routine fingersticks.

BUYING OPPORTUNITY

Following Abbott’s announcement, Piper Jaffray analyst JP #McKim said he believes Abbott’s Medicare approval for #Libre is “more market-expanding than share-taking” for Dexcom, and maintained an Overweight rating on Dexcom shares, seeing the pullback as a buying opportunity for longer-term investors.

The analyst believes the sooner-than-expected Medicare coverage minimizes upside potential for Medicare revenue in 2018, but added that CGM adoption is expected to accelerate and he thinks “the superior product” of Dexcom will win more Medicare patients.

NORTHLAND DOWNGRADES

Northland analyst Suraj #Kalia downgraded Dexcom to Underperform from Market Perform after Abbott announced Medicare coverage for the Libre FGM.

The analyst believes it undercuts Dexcom’s competitive advantages, and contends that there is additional headline risk vis-a-vis Medtronic’s (MDT) Guardian Connect CGM approval in the pipeline.

Further, #Kalia believes Dexcom’s stock is bound to be under pressure over the next 12-18 months. The analyst added that Dexcom does have the best in class sensor and the company has an “excellent” pipeline but argued that the Libre FGM may be “good enough” for a large chunk of patients, especially as its about one-tenth the cost of Dexcom’s upfront price.

OTHER ANALYST COMMENTARY

Cowen analyst Doug Schenkel believes shares of Dexcom are down too much following Abbott’s announcement and that a 10% sellof “appears disproportionate” on a three month timing swing on an expected event. Baird analyst Jeff Johnson said he believes today’s news may not be create as much near-term risk to Dexcom numbers as investors believe.

PRICE ACTION

In Thursday’s trading, Dexcom is down 10.8%, or $6.29, to $51.79.


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Overstock rises on plans for new blockchain venture

Overstock rises after reporting plans for new blockchain venture 

Overstock rises on plans for new blockchain venture. Stockwinners.com
Overstock rises on plans for new blockchain venture

In a regulatory filing last night, Overstock.com (OSTK) disclosed that on December 27 the company, its wholly owned subsidiary Medici Ventures, Patrick Byrne and Hernando de Soto entered into a Memorandum of Understanding that provides that the parties will form a company, “Desoto,” that will be owned 50% by Medici, 33% by Hernando de Soto and 17% by Patrick Byrne, who is the CEO and a member of the Board of Directors of Overstock, and also serves on the board of directors of Medici.

The goal of the new company is to develop a blockchain-based system to develop a global property registry system focused on the property rights of people in the developing world.

Overstock and/or Medici will pay or contribute $14M to help launch the project, $8M of which will be used to fund DeSoto, and Medici will receive a 50% ownership interest in DeSoto.

Patrick Byrne personally will contribute $14M to help launch the project, and will receive a 17% ownership interest in DeSoto.

Hernando de Soto will serve as Chairman of DeSoto and as a director of Medici. Patrick Byrne will serve as Co-Chairman and CEO of DeSoto, in addition to his positions with Overstock and Medici.

“The MOU contemplates a more detailed future agreement, and provides that the parties will cooperate in good faith to reach more detailed agreements in the future,” the filing added.

In pre-market trading, Overstock has risen $1.95, or 2.7%, to $73.50 per share.


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Cellect Biotechnology reports stem cell breakthrough

Cellect Biotechnology announces successful transplant using ApoGraft

Cellect Biotechnology announces successful transplant using ApoGraft. Stockwinners.com
Cellect Biotechnology announces successful transplant using ApoGraft

Cellect Biotechnology (APOP) announced that it has successfully completed transplantation of the first group of three patients using Cellect’s ApoGraft technology in the company’s Phase I/II clinical trial and that after one month follow-up, all three patients have demonstrated complete acceptance of the stem cell transplant with no adverse events related to the study treatment, as determined by the clinical investigator, and no reported serious adverse events or suspected unexpected serious adverse reactions.

The Phase I/II, dose escalating, 4-cohort, open label clinical trial of up to twelve patients is designed to evaluate the safety, tolerability and efficacy of functionally selected donor derived mobilized peripheral blood cells that underwent the company’s ApoGraft process and were transplanted into patients with hematological malignancies in an allogeneic hematopoietic stem cell transplantation.

The primary endpoint of the study is overall incidence, frequency and severity of adverse events potentially related to ApoGraft at 180 days from transplantation. The company plans on recruiting a further three patients for the second cohort of patients following review of the independent data and safety monitoring board.

The company believes that these interim results of ApoGraft present the first signs of a breakthrough in stem cell transplantation.

The product is transplantable within less than 12 hours from donation through a simple process performed on the bedside after selective physiological elimination of immune reaction-causing cells.

The ApoGraft transplantation is intended to result in complete recovery of the patient’s immune system with no related safety concerns in contrast to the significant morbidity or even death causing standard medical procedure.

APOP closed at $7.12. It traded at $9.69 in pre-market trading.


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Deciphera Pharmaceuticals is in focus

Deciphera initiates Phase 3 clinical study of DCC-2618

Deciphera initiates Phase 3 clinical study of DCC-2618. Stockwinners.com
Deciphera initiates Phase 3 clinical study of DCC-2618

Deciphera Pharmaceuticals (DCPH) announced that it has initiated a Phase 3 clinical study to evaluate the safety and efficacy of DCC-2618, a pan-KIT and PDGFRalpha inhibitor, in patients with advanced gastrointestinal stromal tumors.

Gastrointestinal stromal tumors (GISTs) are the most common mesenchymal neoplasms of the gastrointestinal tract. GISTs arise in the smooth muscle pacemaker interstitial cell of Cajal, or similar cells.

Initiation of the INVICTUS study follows results from the ongoing Phase 1 clinical trial presented at the European Society for Medical Oncology Congress in September 2017, in which durable disease control by DCC-2618 was observed in heavily pretreated patients with GIST.

The INVICTUS Phase 3 clinical study is a randomized, double-blind, placebo-controlled, international, multicenter trial to evaluate the safety, tolerability, and efficacy of DCC-2618 compared to placebo in patients with advanced GIST patients whose previous therapies have included imatinib, sunitinib, and regorafenib.

The trial is expected to enroll approximately 120 patients randomized 2:1 to either 150 mg once daily of DCC-2618 or placebo.

DCC-2618 was specifically designed to improve the treatment of GIST patients by inhibiting the full spectrum of mutations in KIT and PDGFRalpha.

DCC-2618 is a pan-KIT and pan-PDGFRalpha inhibitor that blocks initiating KIT mutations in exons 9, 11, 13, 14, 17, and 18, known to be present in GIST patients and the D816V exon 17 mutation known to be present in ASM patients.

DCC-2618 inhibits PDGFRalpha mutations in exon 18, including the D842V mutation that drives a subset of GIST.

Deciphera Pharmaceuticals is a clinical-stage biopharmaceutical company focused on improving the lives of cancer patients by tackling key mechanisms of drug resistance that limit the rate and/or durability of response to existing cancer therapies.

It’s small molecule drug candidates are directed against an important family of enzymes called #kinases, known to be directly involved in the growth and spread of many cancers.

These investigational therapies comprise tumor-targeted agents designed to address therapeutic resistance causing mutations and immuno-targeted agents designed to control the activation of immunokinases that suppress critical immune system regulators, such as macrophages.

DCPH closed at $26.14.


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