Saturday, June 22, 2024

Wearable Device Market Expands as FDA Approves Abbott’s Lingo for Glucose Monitoring

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The glucose monitor market sees significant development as Abbott receives the U.S. Food and Drug Administration (FDA) approval for the wearable device OTC Lingo. Analysts believe that patient uptake is now poised to take off, potentially transforming the glucose monitor market landscape. While Abbott has not yet made a public statement regarding the 510(k) approval, the information is available on the FDA’s website.

The Lingo wearable device, like Dexcom’s Stelo, is designed for use by both non-insulin-dependent type 2 diabetics and non-diabetics. The wearable device, which takes the form of a patch with a tiny needle that pierces the skin, is worn on the back of the arm for several weeks. The wearable device communicates glucose readings to a smartphone, allowing users to monitor their blood sugar levels continuously.

The primary market for these wearable devices is diabetics, but both Abbott and Dexcom see a broader OTC market opportunity among health-conscious individuals who want to track their blood sugar levels and understand how diet and exercise impact their glucose levels. Both companies also offer prescription CGMs for type 1 and type 2 diabetics, with Abbott’s Libre 3 and Dexcom’s G7 range.

Analysts Forecast Rapid Growth in Wearable Device Market with Abbott’s Entry and Expanding Applications

Analysts at William Blair suggest that with two FDA-approved wearable devices now available, demand and market growth are expected to accelerate significantly. This is attributed to the increasing number of non-insulin-dependent diabetics in the US, the broad label for both devices and the removal of the prescription requirement. They believe that Abbott’s entrance into the market will catalyze faster growth than Dexcom could achieve on its own.

The analysts project compound annual growth rates (CAGR) for CGM devices for insulin-dependent diabetics to be in the mid-teen percentage range or better. They predict that the non-insulin market will see even higher growth, with a CAGR of 40% or more through to 2027. They also identify significant, long-term opportunities for CGMs, particularly for prediabetics and those interested in metabolic health. This latter category includes individuals who may use the devices to improve nutrition, assist in weight loss, and enhance athletic performance.

William Blair estimates that over 100 million people, comprising prediabetic individuals and potential metabolic health users, will contribute to the market growth that Dexcom and Abbott will pursue in the coming years. This represents a substantial opportunity for both companies as they aim to capture a larger share of the expanding market.

Wearable Device

Abbott’s Lingo Wearable Device Targets Health and Wellness Market, Poised for Significant Growth

Abbott has already introduced Lingo in the UK, targeting the health and wellness market. This aligns with the strategy outlined by Abbott’s CEO Robert Ford in 2022 at the CES tech trade show, where he described a range of ‘biowearables’ under the Lingo brand designed to support lifestyle behavior change. The pricing model in the UK, which is equivalent to around $1,500 per year, suggests that Lingo could become a multi-billion-dollar product for Abbott over the next decade.

Based on these projections, analysts at William Blair expect the overall domestic CGM market in the US to reach $7.8 billion by 2025 and exceed $10 billion by 2027. This growth is driven by the increasing adoption of CGM technology among a broader range of users, including those focused on preventative health and wellness.

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In summary, the FDA approval of Abbott’s Lingo wearable device, alongside Dexcom’s Stelo, marks a significant milestone in the CGM market. The availability of these OTC devices is expected to drive substantial market growth, particularly among non-insulin-dependent diabetics and health-conscious individuals. Abbott’s strategic entry into this market, combined with its innovative product offerings, positions the company to capitalize on the expanding demand for CGM technology. As the market evolves, both Abbott and Dexcom are set to play pivotal roles in shaping the future of glucose monitoring and improving patient outcomes globally.

 

Resource: Pharmaphorum, June 04, 2024

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