DexCom, Inc. (NASDAQ: DXCM) stock plunged over 9% on October 28th, 2020 (as of 10:32 am GMT-4 ; Source: Google finance) post third quarter of FY 20 performance. The company had officially introduced the Patient Assistance Program at the start of the third quarter, extending the support to the customers who’ve lost coverage during this pandemic time. The company has recently entered into a government wide contract for the sale of DexCom CGM to eligible government buyers, including the VA. This contract will facilitate easier and more convenient access to DexCom CGM as they may allow for pharmacy access to DexCom CGM for eligible veterans. Further, the company has commenced approval support trials for G7 in the mid-October. The company expects to launch G7 in the several key markets during the second half of 2021. On the back of the growth of the business and the expanding patient base, the expansion G7 into all of the core markets is expected to extend into 2022, as the company continues to scale manufacturing to support these markets in the right way.
DXCM in the third quarter of FY 20 has reported the adjusted earnings per share of 94 cents, while reported the adjusted revenue growth of 26 percent to $500.9 million in the third quarter of FY 20. This is driven by the solid new-patient growth over the past year. This patient growth continued in the third quarter with the pharmacy and Medicare channels exhibiting the strongest growth in the quarter. The company continues to see some impact in new patients relative to the expectations, due to the pandemic. The third quarter gross profit was $340.7 million or 68% of revenue, compared to 62.3% of revenue in the third quarter of 2019.
Moreover, U.S. revenue totaled $398.6 million for the quarter, compared to $308.8 million in the third quarter of 2019, representing growth of 29%. The international business rose 17%, versus the prior year, in the third quarter to $102.3 million and increased 21% on a sequential basis from the second quarter.
Meanwhile, Rick Doubleday, the company’s executive vice president and chief commercial officer, will retire at the end of 2020 in order to spend more time with his family.