DexCom Inc. (NASDAQ: DXCM) shares plummeted during pre-market hours and into early morning trading on Thursday. DexCom shares were down nearly 33 percent by noon on Thursday.
The California based company is a medical device manufacturer, which develops designs, developments, and commercialization of continuous glucose monitoring systems for patients that have diabetes.
According to Smarter Analyst, investors were dumping DexCom shares shortly after news of its competitor Abbott Laboratories (NYSE:ABT) received FDA approval for its FreeStyle Libre flash glucose monitoring (FGM) system for diabetic patients. Abbott’s treatment can be worn for up to 10 days, and requires no calibration, and also it can be used to make insulin dosing decisions.
Abbott shares only jumped a little over 5 percent at open on Thursday, upon the FDA approval news. By noon, shares were only up approximately 3 percent.
Many analysts from companies such as JP Morgan, Barclays, Citigroup, and Morgan Stanley have all lowered their price targets and listed DexCom as downgrade or a neutral, according to Marketbeat.