Today, the leader in continuous glucose monitoring (CGM), DexCom, Inc (NASDAQ:DXCM), and FitBit, Inc (NYSE:FIT), the leading global wearables brand, have come together in a joint venture to help bring medical device technology to a new level. The announcement, however, has had a starkly contrasted effect on both stocks. FitBit has gone up considerably, whereas DexCom’s stock is taking a hit.
The move is looking to cross DexCom’s diabetic technology with the new FitBit Ionic smartwatch, which has recently taken a jab at Apple Inc.’s (NASDAQ: AAPL) Apple Watch market, to develop and market products helping people care for their diabetes properly and simplify their health monitoring through a streamlined process of mobile devices starting with the CGM-programmed smartwatches. These devices can help diabetics better understand their overall health as well.
“The collaboration between Dexcom and Fitbit is an important step in providing useful information to people with diabetes that is both convenient and discreet,” said Kevin Sayer, President and CEO, Dexcom. “We believe that providing Dexcom CGM data on Fitbit Ionic, and making that experience available to users of both Android and iOS devices, will have a positive impact on the way people manage their diabetes.”
According to the World Health Organization, 400-million people suffer from diabetes worldwide. The U.S. Government estimates that there are 29-million diabetics in America alone (9.3 percent).
“The strength of our brand and our ability to track critical health metrics continuously for up to 4+ days1, coupled with Dexcom’s market leadership in CGM, present a powerful combination that we hope will help millions of people better manage their diabetes,” said James Park, CEO of Fitbit. “With Ionic, we are focused on driving positive health outcomes and more health focused tools, and this collaboration is a wonderful example of how we plan to bring that vision to our users.”
Both companies will be aiming for an availability in 2018 and plan to maximize their potentials through numerous medical tech initiatives and resources helping people better manage their health.