CMS earlier Basal coverage approval adds confidence for DexCom, says BofA

BofA analyst Travis Steed noted that yesterday morning the CMS published the final rule for Basal continuous glucose monitoring, or CGM, coverage earlier than the mid-year timeframe DexCom (DXCM) and Abbott’s (ABT) Libre expected. The new final ruling will go into effect in mid-April, at which time CMS will start coverage, BofA noted. Dexcom’s 2023 guidance assumes 1 point of revenue growth for Basal, but this earlier approval gives more reason to believe in some upside to the company’s 2023 revenue and EBITDA profitability, said the firm, which maintains a Buy rating on DexCom shares.