Diabetes is only getting worse.
Right now, about 34 million people just in the U.S. have it, says the US CDC. Of those, 20% aren’t even aware they have it. On top of that 88 million Americans are pre-diabetic. In addition, according to the World Health Organization, “The number of people with diabetes rose from 108 million in 1980 to 422 million in 2014. Prevalence has been rising more rapidly in low- and middle-income countries than in high-income countries.”
In addition, the U.S. Preventive Services Task Force says overweight adults should start getting screened for diabetes at age 35.
“We know that you’re at a much higher risk of developing diabetes with age, but younger and younger people are developing the disease,” said Marie McDonnell, an endocrinologist and the director of the clinical diabetes program at Brigham and Women’s Hospital in Boston, as quoted by The Wall Street Journal. “If you can identify people at risk at younger ages, you can reduce the time that an individual spends in a diabetes-range blood sugar if you act on it.”
It’s a big part of why diabetes-related stocks have been explosive.
Look at DexCom Inc. (DXCM) for example.
At $521 a share, the stock could see higher highs – especially with its continuous glucose monitoring device (CGM). Better, earnings and guidance have been explosive. In fact, according to a recent company release:
“In the second quarter of 2021, worldwide revenue grew 32% to $595.1 million, up from $451.8 million in the second quarter of 2020. Volume growth in conjunction with strong new customer additions continues to be the primary driver of revenue growth as awareness of real-time CGM increases.” The company even raised revenue guidance, expecting 22% to 25% growth.
Or look at Tandem Diabetes (TNDM).
According to a company press release, “In comparing the second quarter of 2021 to the same period of 2020, Worldwide pump shipments increased 81 percent to 33,817 pumps from 18,687 pumps, Sales increased 58 percent to $172.1 million from $109.2 million, Gross margin improved to 54 percent of sales from 50 percent of sales, Operating margin improved to 3 percent of sales from negative 11 percent of sales.”
“We achieved record-high sales in the second quarter by expanding and further penetrating the U.S. insulin pump market, and through the rapid uptake of our technology internationally where our business opportunity is still in its early stages,” said John Sheridan, president and chief executive officer. “Our worldwide installed base is now nearly 270,000 people, and we are on track to achieve our goal of bringing the benefits of our technology to more than half a million customers by year-end 2024.”
Or, look at Insulet Corporation (PODD).
Most recently, the company announced “FDA clearance for use of Eli Lilly and Company’s Lyumjev (insulin lispro-aabc injection) 100 units/mL with Insulet’s Omnipod Insulin Management System and Omnipod DASH Insulin Management System. Insulet is the only insulin pump manufacturer in the United States to obtain this indication, providing more flexibility for people with diabetes.”
With diabetes only becoming far more troubling, these are some of the top stocks to consider.