The opportunity to disrupt the US$15.8 billion blood glucose monitoring system market is clear and open for the taking, given the continuous glucose monitor technology on the market today.
First, the basics. Diabetes is a chronic disease where your body can’t process food into energy. It occurs in two types:
- Type 1 diabetes patients can’t produce insulin, which allows cells to absorb blood sugar. This leads to high blood sugar levels and elevated risks for heart, vision and kidney disease that must be controlled through regular insulin injections.
- Type 2 diabetes patients respond irregularly to insulin, but can usually regulate their blood sugar with diet, exercise and other medications; though some will require insulin if other treatments fail.
According to the Centers for Disease Control and Prevention, almost 40 million people in the United States suffer from diabetes. This is just under 10 per cent of the global total of 537 million, as estimated by IDF Diabetes Atlas in 2022, with more than 90 per cent suffering from Type 2 diabetes.
These figures delineate a global market of insulin-dependent individuals in the tens of millions, each of which has a vital daily need to monitor their blood sugar levels, making them prime candidates for continuous glucose monitors (CGMs). According to Grand View Research, these devices represented a global market valued at US$7.8 billion in 2022, with an expected CAGR of 4.4 per cent from 2023 to 2030.
But there’s a problem: while CGMs improve health outcomes by providing consistent blood sugar visibility, the most advanced units money can buy are painful and tedious to work with.
First of all, despite factory calibration for the models dominant in the market, these sensors still have a significant failure rate at or shortly after insertion. For those that do not, many still require the user to take a confirmatory fingerstick if they believe the reported glucose measurement to be in error.
Secondly, CGM sensors must be inserted under the skin and are therefore disposable after use, with patients having to replace them every seven to 14 days, depending on the device. The only implantable glucose monitor on the market needs to be replaced every six months.
Additionally, a sensor is often paired with separate wearable data measurement electronics and a transmitter, adding complexity and inconvenience to day-to-day activities.
Far from mere nuisances, these barriers have severe detrimental effects on treatment compliance, putting millions of patients at a higher risk of long-term complications.
According to multiple studies from the National Library of Medicine, approximately 50 per cent of Type 2 diabetes patients don’t follow their treatment protocols, with the number likely dropping substantially for those requiring numerous tests throughout the day. Additional studies reported by the American Diabetes Association describe slightly higher but no less concerning adherence rates among Type 1 patients.
This is where diabetes specialist GlucoTrack (NDAQ:GCTK) enters the picture with a solution geared towards the disease’s highest-risk insulin-dependent cohort.
The U.S.-based medical device company is currently testing an implantable CGM that far outperformed legacy products in a recent feasibility study, positioning it to reap diabetes device market share thanks to an unmatched patient experience.
GlucoTrack’s monitor yielded laboratory bench testing confirmation of a minimum two-year lifespan, which is “at least four times longer than what is currently available for an implantable CGM,” Paul Goode, GlucoTrack’s CEO, said in a statement.
This tremendous advancement, independently verified by third-party computational modeling, promises a reduction in doctor visits, patient stress, and the burden of sensor verification and replacement, all of which diminish the chances of human error interfering with treatment decisions.
While an industry-leading lifespan is a clear differentiator in the marketplace, the company isn’t stopping there. Goode said GlucoTrack’s CGM will require only an initial calibration with no external wearable, and instead transmits data directly to a patient’s smartphone, potentially heralding the end of daily finger pricking or frequent CGM sensor replacement in diabetes care.
These combined qualities – a four-times increase in longevity, a streamlined, one-time install, and no visual indication of the presence of a device – make for a powerhouse of a value proposition that investors should not underestimate because, between convenience and its absence, human nature dictates that we choose the former.
This means GlucoTrack is on track to improve the lives of tens of millions of insulin-dependent diabetes patients around the world seeking a simpler continuous glucose monitor, with billions in potential revenue to be gained.
When we couple the company’s mammoth upside with its well-funded coffers, and its stock’s 86 per cent loss over the past year, which has been largely driven by an inflationary macro environment, the opportunity for a value play backed by revolutionary technology becomes undeniable.
GlucoTrack’s next step is to replicate its successful feasibility study in a large animal trial, which would then set the stage for a first-in-human trial and eventual commercialization. While the company hasn’t provided a definitive timeline outside of an animal study later this year, long-term investors with an eye for elegant solutions to unmet needs can buy shares today at an out-of-favor price.
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