Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Mid Cap Growth Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the equity markets continued their rally, fueled by enthusiasm for AI, limited evidence of inflationary effects from tariffs, and expectations for further interest rate cuts from the U.S. Federal Reserve. Mid-cap stocks also maintained their positive gains during the quarter. The Russell Midcap Grow ...

DexCom Inc (NASDAQ:DXCM) is facing renewed scrutiny after three people with diabetes reportedly died following issues with its G7 continuous glucose monitor, according to adverse event filings submitted to the Food and Drug Administration in September.DXCM is lagging behind market performance. Get the complete picture here.A recent investigation by Hunterbrook alleged that Dexcom "dropped the ball" in ensuring the accuracy and reliability of its G7 glucose monitoring device.Some patients reportedly experien ...

Core Viewpoint - The investigation by Hunterbrook Media highlights significant safety, operational, and financial concerns regarding DexCom, Inc.'s G7 continuous glucose monitor, indicating a decline in the company's reputation and potential risks to patient health [2][5]. Financial Performance - DexCom's share price was $65.41 as of October 15th, with trailing and forward P/E ratios of 46.79 and 25.64 respectively [1]. - Financial indicators suggest deteriorating fundamentals, including a surge in days sales outstanding and a doubling of work-in-process inventory, raising concerns about revenue recognition practices [4]. Product Issues - The G7 sensor's performance has been compromised due to a secret alteration of a key component, leading to underperformance in accuracy metrics and resulting in the FDA classifying the device as "adulterated" [2][3]. - Users have reported serious inaccuracies, leading to hospitalizations and fatalities, including a case linked to a device failure [2][3]. Corporate Culture and Management - Former employees have criticized the corporate culture for prioritizing profit margins over safety, with inadequate technical oversight and rushed design decisions to compete with Abbott's Freestyle Libre 3 [3]. - There are indications of systemic issues within the company, evidenced by executive departures, insider sales, and repeated product recalls [4]. Competitive Landscape - DexCom faces increasing competition from Abbott's superior devices and potential changes in Medicare policies, which could threaten its market share [4]. - The company's own initiatives, such as the Stelo device, are also experiencing accuracy problems and legal challenges [4].

Core Insights - DexCom (DXCM) reported strong first-quarter 2025 results driven by high demand, record new patient growth, and progress in strategic initiatives [1] - The company’s shares have increased by 18.6% quarter to date, outperforming the industry’s decline of 4.5% [2] - DexCom has a market capitalization of $31.76 billion and projects a 23.1% growth rate over the next five years [2] Access Gain and Market Penetration - Significant expansion in reimbursement coverage for type 2 diabetes (T2D) patients, particularly non-insulin users, is expected to unlock access for nearly 6 million individuals [4] - The first quarter of 2025 saw a record increase in new patient starts from this cohort, the highest in DexCom's history [4] - The over-the-counter CGM, Stelo, is capturing a broader audience, including prediabetes patients and those interested in wellness [5][8] Innovation and Commercial Execution - The launch of the 15-Day G7 system is anticipated to enhance accuracy and product differentiation, potentially improving gross margins [10] - DexCom is optimizing its sales force and expanding its international presence, particularly in France and Japan [11] - The company has a strong cash position of $2.7 billion and announced a $750 million share buyback, indicating confidence in long-term cash flow [12] Estimate Trend - The Zacks Consensus Estimate for 2025 earnings per share remains stable at $2.03, with the second-quarter revenue estimate at $1.12 billion, reflecting an 11.8% year-over-year improvement [13][15] Navigating Near-Term Challenges - Gross margin guidance for fiscal 2025 has been revised down to nearly 62% due to supply-chain disruptions and increased freight costs [16] - DexCom is addressing an FDA warning letter from 2024 inspections, which requires ongoing resource allocation but does not restrict product approvals [17] - The company is advocating for Medicare coverage for non-insulin T2D users, contingent on a trial set to report results in late 2025 or early 2026 [18] CGM Competition on the Rise - DexCom faces increasing competition from Abbott Laboratories, Medtronic, and Senseonics, which are innovating rapidly in the CGM market [19] - Abbott's expansion with its FreeStyle Libre family and OTC devices directly challenges DexCom's Stelo strategy [20] - Medtronic's integration of CGM with insulin pumps and Senseonics' long-wear implantable CGM are also competitive threats [21][22]