Bigfoot stomps on Dexcom shares with Abbott partnership
Jefferies analyst Raj #Denhoy says the decision to choose Abbott over Dexcom and others was a surprise move, and is an endorsement of “simplicity over point accuracy.”
BIGFOOT SELECTS ABBOTT
In a statement today, Abbott and Bigfoot Biomedical announced that they have entered into an agreement to develop and commercialize diabetes management systems, integrating the former’s FreeStyle Libre glucose sensing technology with the latter’s insulin delivery solutions in the U.S.
Abbott will provide Bigfoot with the next generation of its FreeStyle Libre #glucose sensing technology, which will be utilized in the development of personalized systems intended to optimize #insulin delivery without the need for fingerstick calibration of a glucose sensor.
#Bigfoot said it anticipates initiating a pivotal trial incorporating FreeStyle Libre technology in 2018 at clinical research sites across the U.S. The FreeStyle Libre system is currently pending approval by the Food and Drug Administration in the U.S.
Commenting on the news, #Jefferies’ Denhoy told investors that the selection of Abbott’s #Libre over Dexcom and others comes as “a surprise” and is an endorsement of “simplicity over point accuracy” in the future of glucose monitoring and diabetes management.
Bigfoot will use the second-generation Libre, which will include real-time communication, in its pivotal trial starting in 2018, with approval expected in late 2019/early 2020, the analyst pointed out.
Additionally, Denhoy noted that Bigfoot has granted Abbott a period of exclusivity as its Continuous Glucose Monitoring, or #CGM, sensor partner, though Abbott can partner with other systems.
The analyst reiterates a Buy rating and $58 price target on Abbott’s shares.
In Thursday’s trading, shares of Dexcom dropped almost 4% to $69.11, while Abbott’s stock has gained about 1% to $47.99.
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