On August 7, Abbott and Medtronic jointly announced their collaboration on diabetes.Major Partnership Established in Nursing Field.This collaboration,Aimed at integrating Abbott's FreeStyle Libre CGM (FreeStyle Libre 3) product with Medtronic's automated insulin pump (MiniMed 780G) and smart insulin pen (InPen system) to jointly develop a comprehensive system.。Executive Vice President of Abbott's Diabetes Care BusinessCutJared Watkin said: "ThisA partnership combines two global leaders in glucose sensing technology and insulin delivery.Start.FreeStyle LibreTechnology sets the standard for accurate, easy-to-use, and reliable continuous glucose monitoring.”Que Dallara, Executive Vice President and President of Medtronic Diabetes, said, "This system can deliver first-class results with the world's most widely used CGM. We are committed to simplifying diabetes management and enabling a more seamless transition to automated technology for those who aim to achieve greater success in diabetes care."As top companies in the industry, the collaboration between Abbott and Medtronic has broken the stereotype of "kings not meeting each other," and the capital market has responded positively.Both stocks rose by approximately 1.7%.。Based on the high market growth rate, the diabetes sectorThe path has always been a stage for fierce competition among giants.
Abbott's Diabetes Care Business Revenue Reached $1,648 Million in Q2 2024, a Year-on-Year Increase of 15.8%; Medtronic's Diabetes Business Also Performed Remarkably.Revenue of USD 2.488 billion in FY2024, representing a 10.0% increase.As Abbott and Medtronic shift from pure competition to coopetition in the diabetes care sector, the existing market landscape will face a strong impact.RBC Capital analysts believe that this deal is beneficial for both companies and strengthens their positions in the diabetes care market.
Giant Competition: Who Takes the Lead?
Continuous Glucose Monitoring (CGM) is a technology used for real-time tracking and recording of blood glucose levels in diabetic patients. Compared to traditional blood glucose monitoring methods, CGM provides more frequent and precise blood glucose readings, significantly enhancing the ability of diabetic patients to understand and adjust their blood glucose control.Mentioned in the research report by Deutsche Securities,The global share of CGM in blood glucose monitoring has increased from 9.5% in 2015 to 21.4% in 2020, with a market size of $5.7 billion in 2020. The United States and Europe together account for about 70%, forming a duopoly dominated by Dexcom and Abbott.As the commercial potential has been validated, market competition has reached a fever pitch. Established leaders continue to increase investment, while various newcomers are also accelerating their entry.In 2023,Abbott Completes Acquisition of Bigfoot Biomedical (referred to as "Bigfoot").Bigfoot, a veteran company in the diabetes care sector, sold its pump-based automated insulin delivery technology to another leading diabetes care company, Insulet, before being acquired by Abbott. It also had a deep collaboration with Dexcom.As专注 players in the diabetes sector, Dexcom and Insulet have evidently felt the pressure of巨头 entering the market. Following the announcement of the collaboration between Abbott and Medtronic, Dexcom's stock dropped by approximately 8%, while Insulet fell by 3%.But CGM is still in a stage of rapid expansion, and changes in细分领域do not pose a threat.The basic market of the two.Analysts at BTIG said,As a leader in the field of automated insulin delivery, Insulet's Omnipod patch pump product features a unique form factor and business model, often not overlapping with patients considering the use of tubed pumps.。Analysts believe that,CorrectDexcomThe existing user base of Type 1 diabetes patients will not be significantly impacted, as these patients require the use of pumps and need to decide whether to switch from their current devices to Medtronic's system.。Meanwhile, the battle for the CGM market continues.July this year, Roche announced its first CGMProduct——Accu-Chek® SmartGuide CGM Solution Receives CE Mark.A Realm of Strong Competitors: The CGM FieldThe future market landscape remains uncertain.Competitive Channel Pricing: How Much Advantage for Chinese-Made Products?
The 10th Edition of the IDF Diabetes Atlas shows that the total number of adults with diabetes in China has reached 140 million, the highest in the world.Compared with the United States and Europe,ChinaCGMThe penetration rate is still at a low level, and the market has considerable room for growth.
Source: Derben Securities Research Report
According to GY Industry Consulting,In 2023, the scale of China's CGM market increased by 55.4% year-on-year. It is expected that in 2024, the scale of China's CGM market will increase by 49% year-on-year.。
Since 2021, domestically produced CGMs have been successively approved and gradually entered commercialization. Compared with imported products, the newly approved domestic products show no inferiority in configuration data performance and possess the capability to replace imports in the market.
Source: Deutsche Borse Research Report
Moreover, the sales of CGM and traditional blood glucose meters have strong synergy, and Chinese manufacturers have a natural advantage in both hospital and non-hospital channels.
ExampleSuch as Sinocare's blood glucose meter productionThe products have covered 3,500 secondary-level and above hospitals in China, over 220,000 pharmacies and health service terminals, and more than 9,000 community hospitals and township hospitals, providing a conversion platform for the scaling up of their CGM products.
In addition, the single-use price of domestically produced CGMs is relatively low, and with the strengthening of patients' self-monitoring awareness, the potential market for CGMs in China will gradually be unleashed. According to estimates by Guolian Securities,The CGM market size in China is expected to reach 13.1-19.6 billion yuan by 2030.
Source: Guolian Securities Research Report
As a rising star, China-produced CGM has already started "involution" at the product level.
In April this year, MicroTech Medical released its new generation of CGM product, AiDEX X, leveraging artificial intelligence technology for ecological development and building an intelligent doctor consultation and diabetic social platform.
Yuwell Medical's Anytime CT3/CT15, launched last year, boasts advantages such as calibration-free, finger-prick-free, and alerts for high and low blood sugar abnormalities. It is reported that recently Yuwell...Two new trademark applications for "Endurance CGM" have been filed, indicating a new strategic layout in its product portfolio.
Europe and America become CThe main battlefield for GM is due to its early start in product development and, on the other hand, the support from medical insurance policies.
So far, some hospitals in Beijing, Shenzhen and other places have included CGM in the scope of medical insurance payment. With the expansion of coverage, CGM in China will be fully activated.Made in ChinaThe golden age of CGM is also accelerating.
Figure | Shutterstock
