The 3 Best Diabetes Stocks To Buy In 2018

The 3 Best Diabetes Stocks to Buy in 2018

The 3 Best Diabetes Stocks to Buy in 2018

Diabetes is a chronic condition that occurs when the body loses its ability to properly metabolize sugar. Without treatment, people with diabetes end up with too much sugar flowing through their bloodstream, which can lead to a wide range of health problems.
More than 30 million Americans already have diabetes, and another 84 million are at risk of developing the disease. Given these massive numbers, perhaps it isn't shocking to learn that diabetes costs the U.S. healthcare system more than $245 billion annually.
A market opportunity that large has attracted the attention of plenty of publicly traded companies:
Market Cap
Abbott Laboraties
$96 billion
Continuous glucose monitor
$84 billion
Becton, Dickinson
$48 billion
Diagnostic and delivery devices
$3.8 billion
Continuous glucose monitor
Eli Lilly
$89 billion
Insulin and pharmaceuticals
$3.3 billion
Insulin pump
Johnson & Johnson (NYSE:JNJ)
$381 billion
Glucose monitor and pharmaceuticals
Lexicon Pharmaceuticals
$1.1 billion
$364 million
Inhaled insulin
$106 billion
Insulin pump and continuous glucose monitor
Novo Nordisk (NYSE:NVO)
$123 billion
Insulin and pharmaceuticals
$120 billion
Insulin and pharmaceuticals
Senseonics Holdings
$360 million
Continous glucose monitor
Data source: Yahoo! Finance. Market cap data as of 10/25/17.
But which of these diabetes stocks is the best bet for investors heading into 2018? Here are my three favorites.
A big competitor throws in the towel
Roughly 3 millio Continue reading

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3 Top Diabetes Stocks to Buy Now

3 Top Diabetes Stocks to Buy Now

Diabetes is huge problem for Americans. Between 1990 and 2010, the number of U.S. residents with diabetes tripled, and the number of new cases annually doubled. Both prevalence and costs associated with diabetes are projected to increase by more than 50% by 2030.
But where there's a problem, there's also an opportunity. Healthcare companies continue to develop innovative new approaches to treating and managing diabetes. This innovation in turn creates value for investors.
At least 15 publicly traded companies have current products addressing diabetes either on the market or in development. A few of these stocks hold the potential to generate market-beating returns for investors. I think that Abbott Laboratories (NYSE:ABT), Becton, Dickinson and Company (NYSE:BDX), and Johnson & Johnson (NYSE:JNJ) will especially stand out over the next few years. Here's why these are three top diabetes stocks to buy now.
Abbott Labs
Abbott Labs claims a market cap of close to $98 billion. The company's primary focus in the past has been on branded generic drugs, diagnostic systems and tests, nutritional products, and cardiovascular and neuromodulation medical devices. Abbott's diabetes care unit revenue wasn't even listed separately in the company's financial statements.
However, diabetes should be much more important to Abbott in the future. In September, the U.S. Food and Drug Administration (FDA) approved the company's FreeStyle Libre Flash Glucose Monitoring System. It's the first continuous glucose monitoring (CGM) system approved by the FDA that doesn't require a finger-stick blood sa Continue reading

The most innovative companies in diabetes

The most innovative companies in diabetes

Diabetes affects a startling number of people worldwide -- some 415 million in 2015, with 44.3 million of those in North America. About a third of people with diabetes do not know they have it.
Last year Quid kicked off a new series focusing on Type 2 diabetes (which accounts for nearly 95% of the world’s cases), including an analysis of 40,000 patient posts from a leading diabetes forum.
Still, we wanted to take a closer look at the disease, specifically at innovative companies treating diabetes.
First we looked in our proprietary company database of 50,000 startups to see which are receiving the largest VC investments and for what.
We identified more than 1,300 companies playing in the diabetes landscape. In the network above, 9.6% of companies focus on research and drug discovery, with a whopping $2.9 billion in investment in this area.
And even though it includes fewer companies and makes up a much smaller portion of the network, clinical trial-stage drug manufacturers pulled in the next-highest investment figure, roughly $2 billion in total since 2012. Next, companies in glucose monitoring, diagnostics, and immune-based therapies make up a significant portion of the network and account for a huge chunk of the funds raised.
One cluster was particularly interesting in this map: startups in the biotech, small molecules and drug delivery cluster account for just 2.7% of the network but pulled in relatively high investment dollars, topping $955 million.
Zooming in, we see that companies in this cluster produce very interesting technologies indeed.
Delpor, for example, man Continue reading

Time To Buy Medtronic? Watch Diabetes Segment Transformation

Time To Buy Medtronic? Watch Diabetes Segment Transformation

Medtronic is confident of filling the supply-demand gap in its diabetes franchise by end of FY 2018.
The company plans to launch next generation professional CGM device for type 2 diabetes patients in fiscal year 2018.
Partnerships with clinics and hospitals for diabetes management and prevention are expected to help Medtronic offer integrated care to patients.
The company has also entered intofavorable relationships with major payers in USA.
However, investors should be aware ofcertain business risks of the diabetes segment.
Medtronic (MDT) is one of the few medical device companies with product portfolio vastly diversified across therapeutic areas and geographies. The inversion deal with Ireland based Covidien has not only helped the company to shift to lower-tax base but has also vastly expanded the company’s geographic and therapeutic footprint. And then the recently concluded divestiture deal with Cardinal Health of non-core and low growth assets for a consideration of $6.1 billion has truly landed this company in an enviable spot.
Once Medtronic manages to put to rest the supply constraints it is facing in its diabetes business, I believe that the company can easily reach the 12-month consensus target price for Medtronic, of around $91.11.
The diabetes group currently contributes only about 6.3% to Medtronic’s total revenues. However, it is on a cusp of major transformation, one that is capable of lifting or dragging both investor sentiment as well as share price of this diversified medical device player. It should be noted that the lower-than-anticipated Continue reading

Abbott shares jump after approval for diabetes monitor; competitor DexCom crashes on surprise news

Abbott shares jump after approval for diabetes monitor; competitor DexCom crashes on surprise news

Abbott Laboratories stock jumped after the Food and Drug Administration approved the company's FreeStyle Libre glucose monitoring system, more than a year earlier than Wall Street anticipated.
While Abbott shares jumped 4 percent Wednesday after the surprise FDA call, competitor DexCom saw its shares crater by more than 36 percent.
Abbott's Libre is the first glucose monitoring system that adult diabetic patients can use to make treatment decisions without using a fingertip blood system. Analysts at J.P. Morgan say Abbott's aggressive distribution strategy has "the five largest pharmacies" ready to begin selling the device in the U.S. as early as December.
J.P. Morgan, which downgrades shares of DexCom to neutral from buy on the news, also said Abbott's pricing for the device is "even more aggressive than our expectations." Abbott will charge an effective rate of around $4 per day for Libre, lower than the $6 analysts at J.P. Morgan anticipated.
DexCom is no longer the sole competitor in manufacturing glucose monitoring systems, J.P. Morgan said. With new, low-priced competition, the firm says DexCom now must innovate under pressure to discount its hardware, which previously made margins of 45 to 50 percent per device. But all is not lost for DexCom, as J.P. Morgan says its "technology is superior to Libre."
"Before long, DexCom should be able to surpass the Libre offering," J.P. Morgan said. "But it will be at a lower price point and likely less attractive economics than we've all been expecting."
The technology still has a distance to go before widespread adoption, accord Continue reading

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