Abbott stock reversed a 10-day dive Thursday after showing patients taking popular diabetes and weight-loss drugs haven't abandoned their diabetes treatment devices.
The results, which stem from an analysis of insurance claims, could be a boon for Abbott Laboratories and Dexcom. Both make continuous glucose monitors, or CGMs. These body-worn medical devices measure a patient's blood sugar in real time. This allows people with diabetes to properly respond to spikes in their glucose.
Recently, Abbott and Dexcom shares took a hit amid suggestions a new suite of weight-loss medications known as GLP-1 drugs could undo a number of industries, including medical devices that fight obesity-related conditions. But Abbott says patients taking weight-loss drugs also wear their continuous glucose monitors for longer.
On today's stock market, Abbott stock rose 2.7% to close at 98.12. Dexcom stock also jumped 3.7%, closing at 95.46.
Abbott Stock: CGM And GLP-1 Usage Rises
Abbott's analysis is based on the retail pharmacy channel, which covers 280 million people and about two-thirds of patients using its CGM, known as Freestyle Libre.
Overall, more than 40% of Libre users also took a GLP-1 drug, such as Novo Nordisk's Wegovy or Ozempic, or Eli Lilly's Mounjaro. Wegovy is a weight-loss drug, while Ozempic and Mounjaro both treat diabetes. Lilly is hoping to gain approval this year for Mounjaro as an obesity treatment.
According to Abbott, GLP-1 drugs and CGMs can mutually benefit one another. The number of days a patient used Freestyle Libre increased for those also taking GLP-1 drugs. And, adherence with GLP-1 treatment regimens improved among CGM users.
The news helped Abbott stock reverse from a 10-day decline. Shares have fallen almost 7% since Sept. 13.
Will CGM Use Plateau Or Decline?
The bigger question, says Evercore ISI analyst Vijay Kumar, is whether patients on GLP-1 drugs who reach normal HBA1c levels will continue using their continuous glucose monitors. HBA1c is a measure of blood sugar over time, and an important indicator of diabetes progression.
"Ultimately, we would like to see what happens to CGM usage in the same (group) of patients over time," Kumar said in a note to clients. "And whether CGM usage remains relatively stable or whether it could decrease."
Despite Thursday's jump, Abbott stock remains well below its 50-day and 200-day moving averages, according to MarketSmith.com. Dexcom stock is in the same position.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
