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12 Diabetes Shares for Diabetes Consciousness Month


The Omnipod Sprint by Insulet.

November is American Diabetes Month. Mother and father of children with Kind 1 Diabetes chuckle that it begins the day after Halloween. 

My 10-year-old son was recognized in September 2021. 

Kind 1 Diabetes is an autoimmune dysfunction that usually presents earlier than age 25. It’s additionally referred to as Juvenile Diabetes, however a Kind 1 prognosis can occur at any age.

It happens when the physique’s immune system assaults and kills the beta cells within the pancreas that produce insulin.

Insulin “unlocks” the physique’s cells, enabling them to soak up glucose and switch it into vitality.

With out insulin, Kind 1 Diabetics are in danger for diabetic ketoacidosis (DKA), a situation the place the physique burns fats cells for vitality, creating acidic ketones within the bloodstream. DKA is lethal.

The reason for Kind 1 Diabetes is unknown, however household historical past is a major danger issue. 

Kind 1 Diabetes:

  • is just not preventable
  • is just not reversible
  • requires insulin dependency for all times
  • prognosis has nothing to do with weight loss plan or life-style

The JDRF Kind 1 Diabetes Index estimates that the illness impacts 1.4 million People and eight.7 million individuals worldwide

Folks with Kind 1 Diabetes should estimate carbs and calculate insulin doses for each meal for the remainder of their lives.

Kind 2 Diabetes normally impacts individuals over age 45. Danger elements embody older age, extra weight, bodily inactivity, and poor weight loss plan. 

The CDC estimates that 33-35 million People have Kind 2 Diabetes. The illness is managed with improved weight loss plan and life-style decisions, weight reduction, medicine, and insulin. 

Diabetes is manageable, enabling youngsters with Kind 1 to dwell lengthy and wholesome lives. 

A number of investable firms create live-sustaining provides, applied sciences, and medicines to assist normalize the lives of individuals with diabetes. 

Diabetes Shares Overview

My son’s Kind 1 Diabetes has consumed my life and brainpower for the previous yr. Fortunately, we’ve improved at managing his blood sugar utilizing a steady glucose monitor (CGM) and insulin pumps.

However it takes work, particularly as he rapidly grows and exits the honeymoon section (when the pancreas nonetheless produces some insulin).

I’ve accompanied my son via prognosis, numerous finger-pricks, each day pictures, CGMs, pumps, and machine information, and navigated the prices and insurance coverage trickery via all of it.

This expertise has given me perception into firms and applied sciences enabling individuals with diabetes to dwell considerably regular lives. 

As an investor, this provides me some distinctive perception.

The listing of # diabetes shares is just not a suggestion to purchase or promote any of them.

The aim of this text is to elevate consciousness for Kind 1 Diabetes.

I’m grateful for these firms that empower us to handle his situation. We’re enthusiastic about new applied sciences and breakthroughs and eager for an eventual treatment. 

I’ve divided the listing of diabetes shares into three classes:

  • Machine and Provide Makers
  • Insulin Producers
  • Treatment Seekers

Diabetes Shares: Machine and Provide Makers

Folks with diabetes depend on a number of units and disposable provides to get via every day. 

When my son left the hospital, we carried a bag stuffed with about $2,000 value of drugs and provides.

Getting comfy with insulin pens, needles, blood glucose meters, kinds of insulin, and easy methods to reorder the whole lot took a couple of weeks and precipitated plenty of nervousness.

And that was earlier than he bought any wearable units. Now we’re nearly consultants on these items.

Listed here are the businesses. 

1. Dexcom (DXCM)

Picture of Dexcom G6 3-pack box and transmitter.

The Dexcom G6. Applicator (with orange button), sensor, and transmitter.

Dexcom is a diabetes administration firm that manufactures steady glucose displays (CGMs).

CGMs present blood glucose readings to customers each 5 minutes. 

Earlier than CGMs, individuals with diabetes wanted to finger prick earlier than each meal and when not feeling nicely. 4 or 5 finger pricks a day tells a really abbreviated story. 

The Dexcom G6 CGM offers 288 blood glucose each day readings, telling an entire story of blood glucose ranges.

CGMs are additionally predictive, giving customers warnings for low or excessive blood glucose ranges.

Hypoglycemia (low blood sugar brought on by an excessive amount of insulin) may be an emergency.

Hyperglycemia (not sufficient insulin) causes long-term well being points. 

Dexcoms have almost turn into normal care for youngsters with Kind 1 Diabetes as a result of dad and mom can monitor blood sugar remotely and at evening.

Customers insert a sensor into the interstitial fluid beneath the pores and skin. The sensor calculates a surprisingly correct blood glucose studying.

An connected transmitter then relays every studying to a receiving machine (normally a smartphone), and the Dexcom smartphone app shows the studying and shares it with followers. 

Right here’s a snapshot from my cellphone. The large quantity is the newest blood glucose studying. The arrow signifies the development, which helps to foretell highs and lows. 

Dexcom CGM screenshot. Dexcom is one of 12 diabetes stocks on our list.

70-180 vary is right. Decrease is usually higher, however not too low. A spike happens after most meals. 

Sufferers share the information with their endocrinologists and diabetes nurses. Information sharing is a robust instrument for managing the illness.

Our son will probably put on this or an analogous machine almost 24/7 for the remainder of his life. Over time, they’ll get cheaper, smaller, and extra correct.

CGMs require a prescription within the U.S., however in some international locations, you should purchase CGMs over-the-counter. Well being nuts have an interest within the information. 

Dexcoms are usually not low cost. The machine lasts ten days, in order that’s about 36 units per yr, and so they price about $100 a bit, plus 4 transmitters per yr. Insurance coverage covers most of this price for us, however hundreds of thousands worldwide would not have entry to CGMs. 

Musician Nick Jonas is a Dexcom spokesperson.

Right here’s an Instagram publish by Australian mannequin Bambi Northwood-Blyth inserting her Dexcom G6 sensor. We do that each ten days, normally on my son’s higher butt (extra to the correct than hers). 

In its October 2022 quarterly earnings convention name, Dexcom indicated it expects FDA approval for the G7 by the tip of 2022. The machine is 60% smaller, simpler to insert, and cheaper to fabricate.

The Dexcom G7 is already obtainable within the U.Okay. and elsewhere. Its U.S. launch is anticipated to be a catalyst for the inventory.

My son likes a YouTuber referred to as Nerdabetic, who’s everywhere in the new machine. 

2. Insulet (PODD)

Insulin pumps make the lives of diabetics simpler.

As an alternative of taking a number of each day insulin injections, insulin pumps do the job with a couple of faucets.

Pumps offer you significantly better management over insulin supply and allow youngsters to eat like rising youngsters eat — ceaselessly. 

The Omnipod by Insulet is an unimaginable machine. 

It’s the one FDA-approved “tubeless” insulin pump. The machine sticks to the pores and skin and inserts a bit tube beneath the pores and skin, which delivers the insulin. 

Tubeless supply works properly for our son. He’s a swimmer, and the Omnipod goes within the water with him and retains working. 

The person applies a model new machine each 2-3 days, altering physique location every time to make sure the insulin is delivered correctly.

Omnipods are disposable. 

Mannequin Lila Grace Moss proudly sports activities her Omnipod on the runway (left hip space). 

Right here’s a closeup of 1 utilized by my son. It’s in regards to the measurement of an Apple AirPod case. On the underside, you’ll be able to see the cannula (little tube) that inserts beneath his pores and skin.

Picture of the Omnipod dash from the top and bottom.

Omnipod Sprint

There’s a cool YouTube video of an engineer who disassembles the Omnipod to see the way it works inside. Extraordinary.  

This 16-year-old Ninja Warrior, Kate Boone, reveals off her Dexcom and Omnipod as she plows via this insane impediment course. You possibly can see each units on the again of her arms. 

The most recent model, the Omnipod 5, communicates with the Dexcom and may ship insulin based mostly on the CGM readings, predictively avoiding highs and lows. 

The mix of CGMs and insulin pumps is getting us near having an “synthetic exterior pancreas”. Nonetheless, the insulin pumps can’t inform what number of carbs you eat. You need to sort that into the machine. 

Insurance coverage firms just like the Omnipod due to the decrease upfront price and disposability. Different pumps require a excessive upfront price for the machine, which is pricey to exchange if it breaks. 

Representatives from Insulet will ring the closing bell on the Nasdaq on November 14th, World Diabetes Day. 

3. Tandem Diabetes Care (TNDM)

Tandem is one other pure-play diabetes firm that makes a preferred insulin pump referred to as the t:slim.

The t:slim line of pumps was the primary to combine with CGM information, informing an algorithm to assist management blood glucose ranges. 

All of the customers I’ve spoken to like the t:slim. Particularly the way it mechanically adjusts basal insulin (baseline) for highs and lows. 

The picture beneath reveals the t:slim machine related through tubing to an infusion set that inserts a cannula beneath the pores and skin. The machine hangs on a belt or goes in a pocket.

On the correct is a Dexcom G6.

Picture of Tandem t:slim next to a Dexcom G6. Two diabetes stocks featured in our list.

Picture Supply: Tandem Diabetes

Having a robust machine at all times related provides the person glorious management of their insulin supply.

Nonetheless, the machine is just not waterproof, so insulin supply have to be disconnected throughout swimming and showering. 

Disconnection stops the circulation of basal (baseline) insulin and may trigger blood sugar highs. 

The t:slim has the next upfront price in comparison with the Omnipod. The little machine within the image above is a number of thousand {dollars}. Most insurance coverage solely covers that price as soon as each 4 or so. 

Omnipod’s management machine is a small modified smartphone. It solely must be close by when sending the pump directions. 

Customers inform me the t:slim is a good machine, and the tube hardly ever will get in the way in which. However a toddler person I do know struggled with it whereas enjoying sports activities and swimming and has since transitioned to the Omnipod 5. 

Tandem has its personal “tubeless” insulin pump referred to as the Mobi: Tubeless within the product pipeline.

4. Abbott Labs (ABT)

Abbott Labs is a Dividend Aristocrat inventory, having paid and raised its dividend for greater than 25 years. It’s additionally a member of the elite Dividend Kings listing, having elevated its dividend for 50 years.

Abbott has a line of blood glucose displays beneath the FreeStyle moniker. 

The FreeStyle Libre is the first U.S. competitor to Dexcom. It began as a “flash” monitoring system the place you’d maintain a reader machine close to the skin-attached machine to get a studying. It wasn’t steady. 

Nonetheless, the FreeStyle Libre 3 was accredited by the FDA in Might 2022. It performs equally to the Dexcom with steady monitoring and Bluetooth transmittal to a smartphone. 

The FreeStyle Libre is smaller than the Dexcom G6 and customarily prices much less for insurers. Dexcom’s G7 ought to be extra aggressive in measurement and price. 

Wholesome competitors and innovation between the 2 U.S. leaders ought to assist to drive long-term prices down.

New entrants catering to non-diabetics and worldwide producers may additionally come into play if they will navigate the FDA approval course of. 

5. Embecta (EMBC)

Embecta is a “pure play” diabetes inventory. The corporate “gives time-trusted merchandise now with a singular concentrate on diabetes care.”

Its merchandise embody insulin pen needles, insulin syringes, a diabetes care app, and diabetes equipment. 

Embecta is a latest spinoff from Becton Dickinson (BD), one other Dividend Aristocrat. Becton Dickinson is a greater than 100-year-old firm and was an early producer of diabetes provides, together with syringes.

As a derivative paying a dividend, Embecta might be a part of the Dividend Aristocrats listing in January so long as it continues to pay and improve its dividend.   

Folks with diabetes who don’t use a pump (most) do a number of each day injections (MDI) of insulin. And each time, they want a brand new syringe or needle. 

BD is essentially the most well-known maker of those needles. And when you begin utilizing a model for this function, there’s little incentive to alter.

Contemplating the robust model recognition and secure buyer base (customers for all times), Embecta will probably be a gradual and boring enterprise for years to come back.

Numerous traders like boring firms.

Right here’s a pattern of what we introduced house from the hospital.

Sample of supplies we brought home from the hospital. Several diabetes stocks represented here.

6. Medtronic (MDT)

Medtronic is a Dividend Aristocrat that has been a secure holding for dividend traders through the years. The corporate has a number of merchandise within the diabetes house, together with a line of insulin pumps and a CGM. 

Their pumps and CGM are much less widespread amongst Kind 1 youngsters than the manufacturers I’ve mentioned above. 

Nonetheless, Medtronic’s Good Insulin Pen is among the many greatest within the market. 

Diabetics not on an insulin pump usually use “pens” for injections. Pens are simpler to make use of than normal insulin syringes. 

The person inserts an insulin cartridge into the pen, then attaches a contemporary BD needle for every injection. The pen has a small dial to set a exact dose which is injected with the press of a button.

Medtronic’s InPen sends information to a smartphone app that helps to calculate doses, observe historical past, and show data. 

We used an analogous pen referred to as the NovoPen Echo for the primary seven months of diabetes administration. 

Diabetes Shares: Insulin Producers

In case you comply with the information, you may have heard in regards to the excessive prices of insulin. Legislators tried to cross a legislation to cap insulin prices for all People at $35 monthly (out of pocket) through the Inflation Discount Act (IRA).

Half of Congress rejected that provision and solely handed the price restrict for insulin customers on Medicare.

Our household has solely paid a $20 copay for our son’s month-to-month provide. Now we have loads, and the price barely scratches our price range.

Now we have nice medical health insurance due to my beneficiant employer

However for these with out insurance coverage, it may be expensive, inflicting individuals to ration insulin or use expired, much less efficient drugs. 

The excessive prices are perplexing since insulin has been round for 100 years. 

Insulin was found within the early Twenties by a staff on the College of Toronto. The inventors licensed their patents and allowed different firms to patent enhancements. 

Patents on the foremost insulin varieties lastly expired in 2014, however the formulation are tough to copy and want FDA approval, in accordance with Johns Hopkins

Three producers dominate the market, giving them negotiation benefits with the insurance coverage firms and letting them cost what they need to anybody else that wants insulin. 

Listed here are the three diabetes shares and their widespread insulin manufacturers:


7. Novo Nordisk (NVO)

Insulin manufacturers:  Novalog, Novalin, Fiasp, Tresiba

8. Sanofi SA (SNY)

Insulin model: Lantus

9. Eli Lilly (LLY)

Insulin manufacturers: Humalog, Basaglar


Our son’s Endocrinologist prescribed Humalog (bolus, short-acting) and Basaglar (long-acting) made by Eli Lilly. 

The insurance coverage firm “most popular” these medication, which makes me shudder figuring out that insurance coverage executives influenced my son’s therapy. 

Generics are on the horizon. A non-profit referred to as Civica Rx is constructing a generic insulin facility in Petersburg, Virginia, that ought to produce insulin at $30 for a month-long provide by 2024.

Mark Cuban and his Value Plus Medication might also assist decrease the price. The corporate has just lately moved into the diabetes house, partnering with Roche to supply Accu-Chek blood glucose meters and check strips. 

Search “Mark Cuban Insulin” or “Mark Cuban CGM” on Twitter, and also you’ll see how determined persons are for lower-cost insulin and units. 

Diabetes Shares: Treatment Seekers

We met my son’s Endocrinologist the morning after his prognosis. The very first thing she mentioned to us was she is for certain {that a} treatment for Kind 1 Diabetes will turn into obtainable in his lifetime. 

However there’s a saying within the Kind 1 Diabetes group {that a} treatment is at all times 5 years away.

A member of the family works in biotechnology and says that firms choose therapies over cures. 

The biggest firms concentrate on therapies as a result of life-long ailments and medicines to handle them create glorious money circulation. 

As an investor, that’s nice. 

However as a T1D Dad, I like seeing analysis and commercialization of potential cures. 

With developments in drugs, genetics, and healthcare over the previous 100 years, scientists could be close to a treatment. 

Cures are at all times tough and require analysis grants, experimentation, and costly scientific trials earlier than approval. 

A Kind 1 Diabetes treatment would probably require two steps:

  • Restore or substitute the cells killed by the immune system
  • Suppress the immune response to forestall the physique from attacking the brand new cells

Innovation over the previous 20 years might make this doable. Nonetheless, medical doctors, dad and mom, and sufferers should take into account the dangers and prices earlier than getting it executed. 

A number of firms I do know of are engaged on totally different long-term therapies and perhaps even a treatment. 

10. Vertex Prescription drugs (VRTX)

Vertex Prescription drugs is a $75 billion pharmaceutical firm and chief in therapies for cystic fibrosis. 

The corporate has made two daring acquisitions within the Kind 1 Diabetes house prior to now few years.

The primary was Semma Therapeutics in September 2019. 

Semma was a venture-backed startup funded by the JDRF T1D Fund. Semma pioneered a beta cell substitute method utilizing stem cells. 

In October 2021, Vertex introduced better-than-expected ends in a Part 1/2 trial of its VX-880, a stem cell-derived pancreatic islet cell substitute remedy for Kind 1 Sufferers. 

The therapy cured a 64-year-old man recognized with Kind 1 Diabetes 40 years earlier. 

The New York Instances profiled the person’s story (or learn this model when you hit a paywall).

Vertex dove deeper into discovering a treatment for Kind 1 Diabetes in July 2022 when it acquired its major Kind 1 Diabetes stem cell remedy rival, ViaCyte.

ViaCyte has a scientific trial of its personal underway with the FDA. 

Buying ViaCyte’s experience, check services, and mental property ought to assist Vertex transfer nearer to a commercialized treatment for Kind 1 Diabetes. 

There’s nonetheless plenty of work, trials, and FDA hurdles earlier than therapies turn into commonplace. However seeing constructive scientific trials is a constructive signal that in the future my son might obtain therapy to treatment him of this situation. 

A brand new movie was launched final week referred to as The Human Trial about chasing the treatment for Kind 1 Diabetes.

Right here’s a trailer. 

 

11. CRISPR Therapeutics (CRSP)

The stem cell therapies have proven efficacy and the potential to exchange the beta cells that create insulin within the pancreas. Nonetheless, if the cells have the identical genetic markup as the unique cells, the immune system will assault and kill them once more. 

Sufferers have to take immunosuppressant medication to forestall this from occurring. These medication have vital uncomfortable side effects that will deter Kind 1 Diabetics from getting the therapy. 

The Nobel Prize-winning CRISPR expertise empowers researchers to alter cell DNA. The expertise could also be relevant to quite a lot of illness classes. 

In a possible Kind 1 Diabetes treatment, the expertise might assist to change the genetic code of the substitute beta cells to keep away from the physique’s immune response, thus, eliminating the necessity for immunosuppressant medication and enabling a full treatment. 

CRISPR Therapeutics, although public, has little income at this level. However affected person progress inventory traders might even see its potential.

12. Genprex (GNPX)

One remaining firm additionally engaged on a treatment is Genprex. 

Genprex has an unique licensing settlement with the College of Pittsburgh for the gene remedy work being executed by Dr. George Gittes. Gittes is a pediatric surgeon who grew to become excited by how pancreas cells develop and develop. 

He and his staff have developed a strategy to ship gene remedy to the pancreas through viruses. He and his staff have developed a strategy to ship gene remedy to the pancreas through viruses.

The therapy modifies a few of the non-insulin-producing cells within the pancreas to start out making them produce insulin.

In trials with mice, the process labored. However much more thrilling, the immune system didn’t discover the cells for a very long time.

The Gittes Lab on the College of Pittsburgh is now attempting this remedy in monkeys. Most of his work has been funded by grants from the Nationwide Institutes of Well being (NIH).

When enough preclinical information is generated from these trials, the staff will associate with Genprex to design and start a Part 1 scientific trial in diabetic sufferers. Genprex is skilled in scientific trials and navigating FDA pink tape. 

Here’s a video of Dr. Gittes describing the gene remedy process.

Genprex is a pre-revenue microcap firm, making it a particularly dangerous and speculative funding not appropriate for many traders.

Diabetes Shares Abstract

As a reminder, this text isn’t about recommending shares. It’s about elevating consciousness for Kind 1 Diabetes and highlighting the businesses making the lives of individuals with diabetes simpler. 

Please carry out due diligence earlier than investing in any of the shares talked about. 

Right here’s a abstract of the 12 diabetes shares talked about on this article. 

TABLE UPDATED 11/10/2022
SYMBOL COMPANY PRICE MARKET CAP P/E (TTM) DIV/SH P/E (NXT YR) YIELD
DXCM Dexcom 120.07 46134668407 211.5 102.86
PODD Insulet Company 306.41 21167962912 619.6 210.21
TNDM Tandem Diabetes Care 39.26 2520833787 91.6
ABT Abbott Labs 103.12 179744934184 22.34 1.88 22.65 0.0189
EMBC Embecta 30.63 1755048552 4.84 0.6 9.09 0.0212
MDT Medtronic 81.35 108551923076 20.5 2.72 13.54 0.0343
LLY Eli LIlly 366.98 348126147003 57.97 3.92 39.12 0.0108
SNY Sanofi 44.54 112208305456 17.24 1.75 9.86 0.0403
NVO Novo Nordisk 116.15 201584651048 39.02 1.6 3.96 0.014
VRTX Vertex Pharamaceuticals 311.6 79302241742 24.41 19.59
CRSP CRISPR Therapeutics 52.91 4065814714
GNPX Genprex 1.33 63530854

Pictures by RBD except marked in any other case. The writer is lengthy DXCM, PODD, ABT, VRTX, CRSP, and GNPX.

 

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