Couple items from the call which may be of some interest.
Clips taken from various places so without the context of the conversation around them.
ā¦ we are offering an upgrade program by which customers who purchase two G5 transmitters during the upgrade window will be able to get a free G6 transmitter when available ā¦
Weāre still very, very early in the process, which is frankly why weāre remaining conservative when weāre building our guidance and assuming basically static sensor pricing, right? So if we have an ASP on Gen 5 of around $70 a sensor, for modeling and for guidance purposes weāre going to maintain that. Weāve had some early successes in a few places where we have direct-to-commercial contracts where, as Kevin mentioned, the labeled price per day for a 7 day sensor for a G5 has translated into something higher on the label basis for G6. But itās very, very early.
Just to be clear, we didnāt say that weāve made the decision to bring sensor pricing down. What we said is for purposes of our guidance and our internal modeling, weāre assuming that average revenue per patient per year remains static.
Weāve already filed with CMS for Medicare, so that should come sometime in the fall. And weāll be able to move those patients over, but that pricing isnāt going to change from G5 to G6.
What Iād add on the 14-day sensor, and weāre shooting for 14-day sensors and weāve done that for a long time, thatās something that weāve heard from patients for a long time, that they would like to wear fewer sensors.
And while weāre confident in our system that 14 days will perform well enough, we havenāt run the study yet and we need to see how the data looks. Weāre very comfortable with where we are with 10. We will need to run a study at the 14 days.
DexCom is really helpful to patients with respect to warranty. If that sensor falls off at day four, weāve shipped you a new one every time.
I would tell you the thing that I have heard the most about is the insertion system and the ease of use. Every text message Iāve got from a person in the limited launch study, is focused conveniently on the insertion device. They love no calibration also. They say thatās very awesome. But the insertion of this system and the ease-of-use is such a step-up. Itās almost indescribable.
With this device, it is push a button. We saw a video of a child who put on their first G6 today, and she hit the button and said, I donāt feel anything. Is it on? And it was.
With respect to receiver optional, weāre now putting plans together to get that filed. And that really consists of a lot of risk mitigation and human factor study. Itās very apparent FDA is willing to go there, and so weāre contemplating that here now. Weāve had great success with that program in Europe, less than about 40% of our patients even where we have reimbursement are purchasing receivers.
With respect to Medicare and the share function, let me tell you, we work at it diligently. We are writing letters. Weāre engaged politically. We meet with CMS on a regular basis. We are hoping to resolve that by the end of the quarter. But I will tell you the commitment I made on behalf of our team to the Medicare population. If we canāt get this resolved, weāll come up with a Medicare configuration in our product portfolio that does. Weāre not going to let seniors go without share. It is absolutely too important to them to have it, and itās important to their infrastructure and diabetes ecosystem. So Iām really hopeful I have a positive announcement on the next call.
Full transcript with everything in context:
https://seekingalpha.com/article/4168949-dexcom-dxcm-q1-2018-results-earnings-call-transcript?part=single