On Monday, Citi reaffirmed its Buy rating on shares of DexCom (NASDAQ:DXCM), maintaining a price target of $148.00. The reiteration follows recent developments in a U.S. District Court of Delaware patent jury trial. The jury delivered mixed outcomes on several patents related to DexCom's continuous glucose monitoring (CGM) technology.
The jury was hung on patent #216, which concerns the assembly of the CGM inserter designed to minimize its size by using multiple axes for the insertion process. However, they found that DexCom infringed on patent #649, which involves inserter technology utilizing a rotor with a torsion spring intended to make the CGM application less painful.
On the other hand, the jury ruled in favor of DexCom regarding patent #647, associated with the method and system for providing an analyte sensor alignment and retention mechanism to enhance connectivity with a transmitter unit for electrical connection. Similarly, patent #338, which deals with technology for releasably mounting a CGM on the body, was also decided in DexCom's favor.
The trial initially involved 12 patents, but some were invalidated before the trial commenced. The patents in question were specific to DexCom's G6 model, but the outcomes are presumed to be indicative of what could be expected with other products in the G-series CGMs. Despite the mixed verdicts, Citi's stance on DexCom remains unchanged, with the firm also maintaining its Buy rating on Abbott Laboratories (NYSE:ABT), another player in the CGM market.
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