Kevin Sayer
Chairman, President & Chief Executive Officer at DexCom
Thank you, Sean, and thank you, everyone, for joining us.
Today we reported another great quarter for DexCom with third quarter organic revenue growth of 26% compared to the third quarter of 2022. This year is proving to be one of the most exciting periods in our company's history. Access is expanding faster than ever before and we are seeing new levels of enthusiasm for our differentiated products. This can be seen firsthand in our broader rollout of G7 in the US.
Building upon our legacy of being the most accurate sensor, G7's focus on simplicity and affordability continues to attract new customers and prescribers to our platform. Similar to last quarter, the majority of G7 customers continue to be new to DexCom and we took yet another step forward in expanding our prescribing base. There are now nearly 18,000 physicians writing scripts for DexCom that were not prescribing our products before the G7 launch. This represents a notable increase in our prescribing community in only a short period of time as more clinicians recognize G7's unique feature set, ease of use and market-leading levels of coverage. This combination has made it incredibly easy for physicians to prescribe DexCom CGM and drive greater levels of engagement within their patient populations.
Additionally, our new G7 software platform is enhancing our value proposition across all patient types. We've implemented new software updates almost monthly since launch with improvements to features like connectivity and alarm personalization. As one example, we have established new lines of communication in our app to simplify the process of engaging with our customers. We are constantly working behind the scenes to improve the customer experience and we will continue to operate with this type of focus to ensure that we have the most user-friendly and engaging products on the market. Our customers know that when you join the DexCom ecosystem, you get all the benefits today and tomorrow associated with our leading innovation.
Our latest product cycle has also coincided with the largest expansion of coverage in our company's history. With significant reimbursement now established beyond intensive insulin use, there are more people with covered access to DexCom CGM than ever before. As a reminder, Medicare coverage went live in mid-April for people with type 2 diabetes using basal insulin only, as well as certain non-insulin individuals that experience hypoglycemia. Collectively, these two populations represent nearly 7 million people on the US, with approximately half being at Medicare age.
Encouragingly, commercial coverage continues to build for this group. We've established market-leading levels of basal-only reimbursement as payers clearly recognize the potential for better outcomes driven by DexCom. This further supports our industry low out-of-pocket cost for our customers. With a full quarter of broad coverage now under our belt, we continue to be very encouraged by early prescribing trends for this cohort. We know that last quarter that we experienced an immediate uptick in new patient starts once coverage went live and we have seen a clear continuation of this trend since that time.
In fact, we delivered another record Medicare new patient start quarter in Q3 as physicians have quickly adjusted their prescribing patterns to match the new reimbursement landscape. While early, basal adoption trends look very similar to those we previously experienced once broad coverage became available for intensely managed type 2 diabetes. We view this as a very positive sign of things to come. Importantly, when you combine this broader coverage with our leading center technology, we feel incredibly confident in our market position. Since the launch of G7 we have gained share across all reimburse channels and patient segments in the US, and that trend continued this quarter.
Even among non-reimburse channels, we are seeing more and more interest in DexCom CGM. We are also seeing similar dynamics across our international footprint. We have never been better positioned to compete globally from a product, access or capacity perspective. And we once again, took international share this quarter as a result. Our product portfolio continues to be a key contributor to this success. By having multiple products available, we can tailor our offerings to meet the unique needs of individual geographies and reimbursement structures. A great example of this was seen in Francis past quarter where DexCom ONE secured reimbursement for all people on intensive insulin therapy, which represents around 0.5 million people, and we have submitted our evidence to extend ad coverage to the basal population.
In addition to advancing our product offerings, we've been continuously working to build greater commercial scale and flexibility to serve each market more effectively. As we discussed at our Investor Day, one way to drive scale is through the conversion of key international markets from distributor to direct operations. Historically, these conversions have been followed by a notable uptick in performance, as we provide greater levels of support and focus to these markets once we oversee all facets of sales and distribution. Along those lines, we recently made the strategic decision to go direct in Japan. As a reminder, Japan became one of the first countries to establish broad reimbursement for anyone taking insulin late last year, representing more than 1 million lives. Despite this, the market remains in its very early stages, and we will continue to work to drive much greater CGM adoption over time as we initiate direct sales in the second quarter of next year.
Finally, at EASD this month, we added to our substantial base of distinctive clinical evidence with new data around long term DexCom CGM outcomes and inheritance the impact of DexCom ONE for type 2 diabetes and performance within the pregnancy setting. Study after study, we continue to demonstrate DexCom's position as a cornerstone within the evolving diabetes care, and metabolic help landscape. Across a wide range of customers and care settings our product plays a unique role in providing real-time information that can drive behavior change, greater patient accountability, and more informed therapy decisions.
Like everyone else, we have also been interested to see the latest data behind new drug therapies. We believe these drugs playing important role in the care continuum and it is encouraging to see new solutions emerging and a growing appreciation around the need for better and earlier care. Data continues to demonstrate that clinicians prefer to use CGM together with these drugs to drive the best possible outcomes. In fact, we shared claims data this quarter that showed prescribing trends for CGM increase once someone is initiated GLP-1 therapy as clinicians favor DexCom for both its protective features and ability to support lifestyle management.
As an update, we looked at trailing 12 month data through August 2023 would suggest this dynamic is even more pronounced among the newest generation of these drugs. The data clearly showed that CGM usage grows faster in GLP-1 users than those who are not on therapy. This further demonstrates the complementary nature of DexCom CGM across all therapy regimes in diabetes.
As we look forward, we continue to ensure that we advance our unique role within the ecosystem of care as we progress, our mission of empowering people to take control of health. This will include launching new products such as our non-insulin product coming next summer, as well as advancing our ongoing clinical work across much broader populations. We are still very early in our story in terms of potential impact and the number of lives we can ultimately touch. Our future is incredibly bright.
With that, I will turn it over to Jereme for a review of the third quarter financials. Jereme?
