Dexcom stock popped Tuesday after the diabetes devices company refuted rumors that it's in active negotiations to acquire any company.
The statement comes a week after reports suggested Dexcom could acquire Insulet, forming a major diabetes devices conglomerate. Dexcom makes continuous glucose monitors, or CGMs, which can be paired with insulin pumps like Insulet's.
"In light of recent sustained media and market speculation as well as the upcoming American Diabetes Association conference, we wish to confirm that Dexcom is not in active discussions regarding a merger transaction at this time," the company said in a written statement.
Dexcom stock jumped 3.1% to 297.94 on the stock market today. Insulet stock, on the other hand, tumbled 9.2% to 213.48.
Dexcom Stock Remains Under Pressure
The rumored deal would have come at an odd time for Dexcom, BTIG analyst Marie Thibault said in a recent report. Dexcom stock is under pressure and has largely trends down this year after failing to break out of a cup with handle in April, according to MarketSmith.com.
Further, a marriage between Dexcom and Insulet could limit cooperation between companies with diabetes devices. Dexcom's CGM can link with Tandem Diabetes Care's insulin pumps. Insulet is reportedly working to pair its pump with Abbott Laboratories' glucose monitor.
On Tuesday, she noted Dexcom stock tumbled as Insulet shares roared higher on the rumor.
"We expect shares to continue to be volatile in the coming days as investors digest this release ahead of this upcoming weekend's American Diabetes Association 82nd Scientific Sessions," she said in a report Tuesday.
But Thibault kept her buy rating and 540 price target on Dexcom stock.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
