Why Am I BULLISH on SENS Stock[100X Potential]
Senseonics Holdings, Inc. engages in the design, development, and commercialization of implantable continuous glucose monitoring system for people with diabetes. Its primary product is the brand Eversense, a gluscose monitoring device which includes sensor, smart transmitter, and mobile application.
INDUSTRY
- 13% of American adults have diabetes, and 33% have prediabetes. The majority are Type 2 diabetes which is the one that’s usually caused from obesity (Type 1 is genetic).
- Growing cases of diabetes is anticipated to propel market growth, with increasing number of patients opting for simplified CGM devices.
MAJOR COMPETITORS
- Dexcom’s G6 CGM is inserted in the skin every 10 days, wirelessly sending and receiving data to smartphones and Apple Watches, etc. The sensor however requires a small needle to be anchored and wedged under the skin for the entire duration. (Costs $299 monthly)
- Abbot Freestyle Libre, 14 Day System is the same concept but every 14 days instead. ($65 monthly)
- Medtronic Guardian 3 CGM System is also the same, but for every 7 days. ($750 monthly)
- All three major competitors are short term solutions and involve a somewhat painful reinsertion.
MY BULL CASE
- The Eversense CGM is a 90 day arm injection sensor implant. The three competitors all restrict movement due to the needle pulling and pushing into skin, but with Eversense there is supposedly no pain or discomfort after the initial injection.
- Even though they have competition, there is no other product that involves an injection, which many new users are reporting it to be more convenient than the needle ones (more than 80% of users who have previously used the competition’s product are saying they prefer Eversense).
- Cost is $350 for 3 months, so slightly above $100 per month which is very cost competitive.
- Already FDA approved, so this is not a speculative play, they already have many active users. They have filed for FDA approval of 180 day implants, and their pipeline includes a 365 day implant.
- Medicare now covers the costs and use of Eversense. For this reason and previously stated reasons, this company could see drastic market adoption in the future in my opinion.
- The company has yet to recover from the COVID economic downfall, bringing many things to a halt (reason why the stock price has been consistently low since COVID). They have recently partnered with ASCENSIA, the LARGEST diabetes treatment company IN THE WORLD. This partnership let the company come out of hibernation and is beginning to ramp up again. There are many different diabetes care companies partnered with Ascensia for data analysis, insulin delivery, etc. However, for the CGM sector, Senseonics is the only partnership they have for this category (Ascensia is also partnered with Medtronic, Senseonics’ competitor, but not for their CGM tech). Ascensia clearly sees the potential in Eversense that they don’t see with other companies. For this reason, this could be a good COVID recovery play on top of all the recent positive catalysts.
- Lastly, many big institutional investors such as Vanguard and Blackrock already have a huge holding for this company in their funds, so there seems to be a general agreement from expert researchers and analysts that this company is headed for huge growth.
Conclusion
Since diabetes is a life threatening health concern with a huge population of Americans suffering from it, CGM systems aren’t just to assist with this, but it is a necessity for someone’s survival and will help dramatically reduce Healthcare costs by monitoring blood Glucose Levels and preventing related complications. If you know of anyone in your life who has diabetes, you probably know how ridiculously expensive it is to keep up with the costs, and how much time and effort it takes on a daily basis to make sure their glucose levels aren’t dangerous. With an increasing rate of diabetes in the Country/World, many patients are looking for convenient and affordable products. Senseonics’ Eversense tech is already proven to be a popular growing product, but could get even more popular if their 180-day and then their 365-day implants get FDA approved.
Thank you for taking the time to read!
