DexCom, Inc. (NASDAQ:DXCM) Q1 2024 Earnings Call Transcript

DexCom, Inc. (NASDAQ:DXCM) Q1 2024 Earnings Call Transcript April 25, 2024

DexCom, Inc. beats earnings expectations. Reported EPS is $0.32, expectations were $0.27. DexCom, Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).

Operator: Ladies and gentlemen, welcome to the Dexcom First Quarter 2024 Earnings Release Conference Call. My name is Abby, and I will be your operator for today’s call. At this time, all participants are in a listen-only mode. And later, we will conduct a question-and a-answer session. [Operator instructions] As a reminder, the conference is being recorded. And I will now turn the call over to Sean Christensen, Vice President of Finance and Investor Relations. Mr. Christensen, you may begin.

Sean Christensen: Thank you, Abby, and welcome to Dexcom’s first quarter 2024 earnings call. Our agenda begins with Kevin Sayer, Dexcom’s Chairman, President, and CEO, who will summarize our recent highlights and ongoing strategic initiatives, followed by a financial review and outlook from Jereme Sylvain, our Chief Financial Officer. Following our prepared remarks, we will open the call up for your questions. At that time, we ask analysts to limit themselves to one question so we can provide an opportunity for everyone participating today. Please note that there are also slides available related to our first quarter 2024 performance on the Dexcom Investor Relations website on the Events and Presentations page. With that, let’s review our safe harbor statement.

Some of the statements we will make in today’s call may constitute forward-looking statements. These statements reflect management’s intentions, beliefs, and expectations about future events, strategies, competition, products, operating plans, and performance. All forward-looking statements included in this presentation are made as of the date hereof based on information currently available to Dexcom, are subject to various risks and uncertainties, and actual results could differ materially from those anticipated in the forward-looking statements. The factors that could cause actual results to differ materially from those expressed or implied by any of these forward-looking statements are detailed in Dexcom’s annual report on Form 10-K, most recent quarterly report on Form 10-Q, and other filings with the Securities and Exchange Commission.

Except as required by law, we assume no obligation to update any such forward-looking statements after the date of this presentation or to conform these forward-looking statements to actual results. Additionally, during the call, we will discuss certain financial measures that have not been prepared in accordance with GAAP with respect to our non-GAAP and cash-based results. Unless otherwise noted, all references to financial metrics are presented on a non-GAAP basis. The presentation of this additional information should not be considered in isolation or as a substitute for results or superior to results prepared in accordance with GAAP. Please refer to the tables in our earnings release and the slides accompanying our first quarter earnings presentation for reconciliation of these measures to their most directly comparable GAAP financial measure.

Now, I will turn it over to Kevin.

Kevin Sayer: Thank you, Sean, thank you everyone for joining us. Today, we reported another great quarter for Dexcom, with first quarter organic revenue growth of 25%, compared to the first quarter of 2023. Demand for Dexcom CGM remains very high as customers continue to recognize and value our leading product performance and differentiated user experience. While it has only been a year since the launch of G7 in the U.S., we have seen a significant shift in the landscape over that time. We have attracted tens of thousands of new prescribers to our ecosystem, meaningfully improved our presence within primary care, and experienced growing demand from people with diabetes who are benefiting from significant expansions in coverage over the last year.

Much of this momentum can be directly attributed to our product performance and innovative features. With the launch of G7, we extended our leadership in sensor accuracy, and took a significant step forward in ease of use. We also introduced a new software ecosystem which was designed to improve our user experience, and drive high levels of customer engagement and retention. Importantly, we have continued to enhance the G7 experience with ongoing improvements to both the hardware and software platforms. In fact, we have completed software updates almost monthly since the launch of G7, introducing new features, upgrading performance and connectivity and, most recently, establishing the ability to integrate insulin data into our app. These are great examples of how our new software architecture enables much faster innovation.

We are constantly working to advance the customer experience and reinforce Dexcom as the technology leader in this space. Along those lines, we were very excited to receive clearance by the FDA for our direct-to-watch feature for G7 in the first quarter. This approval will allow our customers to use their Apple Watch as a primary display rather than connecting through their mobile phone, providing even greater flexibility in how and where they interact with their glucose data. This added to our long list of industry firsts, as G7 is the first FDA-cleared CGM that can communicate directly from sensor to watch. To enable this, we built a robust connectivity infrastructure into the design of G7. With the ability to connect to three different Bluetooth devices at the same time, our customers can simultaneously connect to a phone, a pump or receiver, and a watch.

Dexcom is the only CGM system that gives customers these options. We have received great feedback since we launched our direct-to-watch software in the U.K. and Ireland, and look forward to extending it to additional markets shortly. Features like these add to our standing as the innovator in the CGM industry, strengthening our sensor platform as global access and awareness continue to expand. As a reminder, we recently crossed the one-year mark since the landmark CMS decision to expand coverage for all people using insulin and certain non-insulin using individuals that struggle with hypoglycemia. This decision paved the way for greater commercial coverage for these populations, further strengthening our position as the most covered CGM in the U.S. It also served to broaden our conversations with payers.

While payers have long recognized Dexcom’s ability to help titrate insulin, there is now a growing appreciation for our ability to drive better outcomes through behavior change and customer engagement. There is also a growing awareness of these benefits in the clinical community. With much broader coverage now available, many physicians have started incorporating Dexcom CGM earlier into their customer care plans. They recognize lifestyle management as a cornerstone of the diabetes care and metabolic health landscapes, and see CGM as a core tool to drive behavior alongside new drug therapies, like GPL-1s. To that point, in the second quarter, we will be launching a medication logging module and activity integration tool with the G7 app to help those using Dexcom CGM with these therapies.

While this has helped us significantly expand our prescriber base over the past year, we are still only scratching the surface of this sizable opportunity. There are over 200,000 primary care physicians in the U.S. who treat tens of millions of people with diabetes. There remains a clear opportunity for us to deepen our presence within this channel as we work to drive even greater care for their patients. As a result, we announced an expansion of our salesforce this past quarter. We were blow away by the level of interest and the quality of talent that we were able to attract for these roles. By the end of the first quarter, we had already completed our hiring, and trained these new reps. This team is excited to hit the ground running, and we look forward to seeing them build momentum over the course of the year.

As part of this initiative, beginning in the second quarter, we are also taking steps to optimize the structure of our sales team to be most effective with our call points across endocrinologists and primary care physicians, as well as leading practitioners in maternal fetal medicine. We expect our new team and this upgraded structure to help us better capitalize on the significant opportunities ahead. Along those lines, we hit another significant milestone in our company’s history, with the FDA’s clearance of our newest product, Stelo, the first glucose biosensor approved for use without a prescription in the U.S. Recognizing a significant unmet need for the 25 million people with type 2 diabetes who are not on insulin or at risk of severe hypoglycemia, we developed Stelo as a more tailored solution for this population, and work closely with the FDA to simplify access to this product.

By removing the burden of a prescription, we expect Stelo to draw broad interest from both the clinical community and directly from members of the diabetes community who want to better understand their blood sugar. In our dialogue with the FDA, it became clear that iCGM accuracy remain critically important in establishing this new sensor category, both as a safety measure and to ensure that our customers are receiving reliable, actionable information. Stelo will leverage the industry-leading accuracy of our G7 sensor hardware while providing a custom software experience to more directly meet the needs of those not taking insulin. We’re on track to launch Stelo this summer as a 15-day cash pay product, and will continue to build our case with payers for broader coverage.

Stelo will be fulfilled initially via a brand-new e-commerce website, and available in one-time purchases or subscription models. We look forward to providing greater detail on Stelo features, including pricing, immediately before launch, and we’ll share further updates on our go-to-market strategy and ordering process at ADA and on our second quarter earnings call. In our international business, we also advanced some key strategic initiatives this past quarter. In February, we officially launched Dexcom ONE+ into eight European markets, which is our first step in moving our entire Dexcom ONE product line into the G7 form factor. This transition brings several of the G7 technological benefits to this customer base, such as the smaller form factor, shorter warm-up time, and improved accuracy, and further simplifies the prescribing process for physicians.

Moving to a shared hardware platform also benefits our cost structure over time as it allows us to drive greater volume to our G7 lines and more quickly reach scale. We also completed our transition to a direct sales model in Japan, enabling us to begin commercial operations at the start of the second quarter. As a reminder, this is one of the only markets in the world with coverage for all people using insulin, which represents over 1 million people. Despite this, market penetration remains in its early stages, and we see a significant opportunity to drive greater uptake in Dexcom CGM share. As a result, we believe Japan can become a key growth driver for us over time as we strengthen our presence in this market in the coming quarters. This is an incredibly exciting time for us.

There will be a lot to learn with the launch of Stelo, and we are thrilled to once again pioneer the CGM industry with a new subset of users. We look forward to sharing more updates with you as we begin this journey. With that, I will turn it over to Jeremy for a review of the first quarter financials. Jeremy?

Jereme Sylvain: Thank you, Kevin. As a reminder, unless otherwise noted, the financial metrics presented today will be discussed on a non-GAAP basis. Reconciliations to GAAP can be found in today’s earnings release as well as on our IR website. For the first quarter of 2024, we reported worldwide revenue of $921 million, compared to $741 million for the first quarter of 2023, representing growth of 24% on a reported basis and 25% on an organic basis. As a reminder, our definition of organic revenue excludes the impact of foreign exchange in addition to our non-CGM revenue acquired or divested in the trailing 12 months. U.S. revenue totaled $653 million for the first quarter, compared to $526 million in the first quarter of 2023, representing growth of 24%.

Our recent momentum in the U.S. continued this quarter as we again benefited from the largest expansion of reimbursed coverage in our company’s history. This led to another quarter of significant new customer demand in the U.S. and contributed to our record new start quarter globally. As Kevin mentioned, we are excited to build on this momentum with our expanded sales force and look forward to seeing the new team ramp up in the months ahead. International revenue grew 24%, totaling $268 million in the first quarter. International organic revenue growth was 26% for the first quarter. We executed very well across our international footprint and again took market share this quarter, benefiting from our targeted access expansion and product portfolio strategy.

We delivered a particularly strong quarter in our core European markets, which more than offset the pause in growth from Japan as we finalized its transition to direct sales. Our first quarter gross profit was $569 million or 61.8% of revenue compared to 63.4% of revenue in the first quarter of 2023. This gross margin result was in line with our expectations as G7 continues to become a larger part of our product mix. As a reminder, G7 carries a lower margin than G6 today, though we expect this to change in the coming quarters as we drive more volume through our G7 lines in the U.S. and Malaysia. Between the continued G7 demand, our pump integrations, and moving Dexcom ONE to the G7 platform, we continue to see more of our base moving to the G7 form factor.

Operating expenses were $428.9 million for Q1 of 2024 compared to $391.2 million in Q1 of 2023. This quarter was another demonstration of our ability to generate significant operating leverage as we grow. In fact, we grew our revenue at more than double the rate of operating expenses in the first quarter, resulting in more than 600 basis points of OpEx leverage compared to the first quarter of 2023. Operating income was $140.2 million, or 15.2% of revenue in the first quarter of 2024 compared to $78.6 million or 10.6% of revenue in the same quarter of 2023. Adjusted EBITDA was $220.9 million or 24% of revenue for the first quarter, compared to $145.9 million or 19.7% of revenue for the first quarter of 2023. Net income for the first quarter was $128.2 million or $0.32 per share.

We remain in a great financial position, closing the quarter with approximately $2.9 billion of cash and cash equivalents on the back of nearly doubling our free cash flow year-over-year. This provides us significant flexibility to both support our organic growth opportunities, and access any strategy uses of capital. From a capacity perspective, we remain in a great position with Malaysia quickly scaling, and we are further diversifying our footprint with the build-out of our Ireland facility. This leaves us well-positioned to support our near-term growth opportunities, including the highly anticipated launch of Stelo this summer. Turning to guidance, we are raising the midpoint of our revenue guidance with an updated range of $4.20 billion to $4.35 billion, representing organic growth of 17% to 21% for the year.

For margins, we are reaffirming our prior full-year guidance of non-GAAP gross profit margin in a range of 63% to 64%, non-GAAP operating margin of approximately 20%, and adjusted EBITDA margin of approximately 29%. With that, we can open up the call for Q&A. Sean?

Sean Christensen: Thank you, Jereme. As a reminder, we ask our audience to limit themselves to only one question at this time, and then re-enter the queue if necessary. Abby, please provide the Q&A instructions.

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Q&A Session

Operator: Thank you. We will now begin the question-and-answer session. [Operator Instructions] And we will take our first question from Danielle Antalffy with UBS. Your line is open.

Danielle Antalffy: Hey, good afternoon, everyone. Thanks so much for taking the question, and congrats on a strong start to the year. Kevin, so the Stelo over-the-counter clearance was obviously one of the most exciting that we saw happen in the first quarter. Can you help us understand how you think the OTC label expand your addressable market, and how you’re aligning the new sales team to capitalize on it?

Kevin Sayer: Well, thank you for the question. And it’s been every bit as exciting for us as it’s been — as you can imagine, Danielle. We have had more media impressions, and enquiries, and [buzz about] (ph) Stelo from the outside than really anything we’ve ever done, it’s been spectacular. We’re very excited for it. The way it expands our access, since we thought through this, there’s 25 million people with type 2 diabetes who are not on insulin or who don’t suffer from severe hypoglycemia. We wanted to get that product out quickly and make it very accessible to them. We studied this, we spent a lot of time thinking about it. The best way to do that is to eliminate the prescription process, and not to have them in the middle of that — of physicians.

And that’s also helpful for their healthcare providers because they don’t have to call the pharmacy and do prescriptions as well, so the key to this and particularly in getting to a lot of people is to make this very easy to obtain. And that’s we went over the counter with it. At the same time, as I said in my remarks, we’re thrilled with the labeling and the fact that we still have iCGM controls around the sensor by going over-the-counter we didn’t sell them at the floodgates for everybody to come in. We still have to have an incredibly good product to go do something like this. So, we think we have a very, very good advantage there. With respect to our sales expansion, I made a couple of comments about the expansion and positioning of the salesforce.

We know for a fact that when we have coverage in the physician arena, when we call on doctors we do extremely well. And so, as we repositioned our salesforce, I talked about repositioning between endocrinology, primary care, and also the maternal and fetal medicine markets as well. We’ve repositioned our group to whereby our — we have specialists who spend more time in the endocrinology offices and with high prescribers, not so much with those who don’t prescribe a lot. And a lot of the new adds, a lot of expansion relates to primary care, where they will talk about Stelo with primary care doctors who see almost all of the type 2 patients who aren’t on insulin. So, by expanding this way, we believe we’ll be able to have more coverage with the physicians as well.

And so, they will take that message out and talk with the doctors as well. But this will also be a message driven direct to consumer in the same way that you see all the other type 2 products going on. Jereme, you might have a bit to add to that too.

Jereme Sylvain: Yes, you asked the question about the salesforce, and Kevin certainly pointed to Stelo as a big part of the salesforce in expanding the TAM. And so, one of the reasons to expand is exactly as Kevin said, there’s a massive opportunity there. However, there’s also a massive opportunity in our existing markets. G7 is a wonderful product. G6 is a wonderful product. There is coverage continuing to expand as well in those categories. And so, expanding the salesforce also allows us to cover more in that category. And that court of category continues to do incredibly well. We had a record new patient quarter this quarter. And so, you could expect to see, really, growth on both ends of that as a result of the expansion of that salesforce.

Operator: And we will take our next question from Robbie Marcus with J.P. Morgan. Your line is open.

Robbie Marcus: Great. Thanks for taking the question, and congrats on a nice quarter. Wanted to talk about the leverage we saw down the P&L. It was pretty impressive. It will be by — like 150 bps on operating margin. So, just wanted to see how we should think about gross margin progression and operating margin progression throughout the year? I saw the reiterated guidance, but just trying to think about cadence, especially in light of the Stelo launch and the key drivers of that upside in the quarter and how we should think about that moving through the year? Thanks a lot.

Jereme Sylvain: Yes, sure, Robbie. Thanks for the question. The way to think about gross margin, and that, of course — well, of course, yes, we talked — when we set guidance, that this was going to look a little bit like a more typical year. And in a more typical year you generally see 300 to 400 basis points of expansion over the course of the year. And that’s what I’d expect to see over the course of this year. A lot happened last year with the transition from G6 to G7, it’s not a typical year. We had a new manufacturing facility coming online. So, as you go back into years prior to that, you see that sort of cadence. That’s how we’re thinking about, at least over the course of the year right now. And so, that gives you some context for that cadence.

From an Op margin perspective, or at least an OpEx spend perspective, we’ve already made the investment in the salesforce. And so, that you see playing through in the first quarter, and to your point, you saw some nice leverage in the first quarter. We will be making investments — further investments in Japan here as we go live in the second quarter, and that will play out over the course of the year. And then, obviously associated with the launch of Stelo over the course of the summer, we’ll be making investments there. So, we won’t get the same leverage that you ultimately saw in the first quarter over the balance of the year. You should expect some leverage over the course of that. And that, ultimately, contributes down to what you see as an expansion of Op margin despite a gross margin guide, there’s a bit of a click back from the prior year.

So, that’s the way to think about it. In terms of the over-performance in the Q1, I think you are alluding to the beat in terms of Op margin. And I think the takeaway here is it’s an encouraging sign for us. We’ve demonstrated over the past few years we can drive leverage into this business. This year is no exception. All of the efforts that we’ve been talking about in prior years continue. However, it’s a little early to change how we’re thinking about the full-year. First quarter, as you mentioned nice start to the first quarter, and we’ll keep you updated on progress as the year progresses.

Operator: And we will take our next question from Larry Biegelsen with Wells Fargo. Your line is open.

Larry Biegelsen: Good afternoon. Thanks for taking the question. Kevin, I’d love to ask about Stelo. So, I heard your comment about an e-commerce Web site. Why an e-commerce Web site as opposed to pharmacies and retail? Maybe talk about how you see utilization playing out? And I know the indication is only for type 2 oral patients, but do you see an opportunity on type 2 oral patients such as prediabetes and health-conscious people maybe down the road? Thanks for taking the question.

Kevin Sayer: I’ll start with the end and go back to the Web site. That product is labeled for people not on insulin. And it’s not necessarily labeled just for people with diabetes. We designed the experience to focus more on those with type 2 diabetes because we believe there’s a very, very strong unmet need. And a product tailored to that solution, we think, can do very well. We believe people will be interested who don’t have diabetes and will impact user that will purchase it. But the focus, out of the gate, is in this marketplace where people have a direct need. Over time, we definitely see this platform and features in our software migrating towards those other markets. We just wanted to get started here first. With respect to the Web site and the reason we’ve gone with this direct distribution model, we’ve had great success with it launching products in some of the international markets as we’ve rolled Dexcom One out.

So, we do know how to do this. Second of all, we want a little bit of control when the launch, when we start. We want to understand what’s going on. We want to track utilization patterns. We want to see how this goes. And we felt this was the most efficient way to do it. And as you go back to my comments, I said initially, we will launch in this program. I think as this gets bigger; we’ll seek other distribution channels if it’s more efficient to get more product to people. We are very well positioned, and we’ve done a lot of work setting this website up, and then the distribution process will be extremely efficient. So, we’re not concerned about being overrun. Right now, we’re in a really good position to get this product to the people that want it through the website that we’ve set up.

Jereme Sylvain: Yes, and then to your question on utilization, Larry it’s going to be a little bit of everything. I think there’s going to be some users that do use it full time. I think some folks will use it intermittently, that’s based on our market research. Our market research has basically, for the most part, indicated once folks are on this product, they want to use it. And I think we’ve run studies where there was a high either utilization while in study and a high request to continue utilization post study. That all being said, as we think about modeling, we want to make sure we’re prudent in doing so. And so, we have a variety of utilization patterns that we’ll ultimately put out there. So, I think expect a little bit of everything. That population is so big, you’ll get, I think, a grab bag of everything. Fortunately, we always are surprised to the positive on how often folks want to wear these things.

Operator: And we will take our next question from Joanne Wuensch with Citibank. Your line is open.

Joanne Wuensch: Thank you very much for taking the question, and congrats on the quarter. With a 15-day Stelo out in the market, what are the steps to bringing a 15-day sensor onto the G6 or G7 platform? And what are the economics of moving to that timeframe? Thank you.

Kevin Sayer: Yes. First of all, there won’t be any G6 15-day. We’re not going to spend any more money on G6. I can assure you of that. One of the reasons we’re launching Stelo with 15 days in our current G7 platform is to learn its performance in this type of environment. As we’ve talked earlier, we have a level of performance reliability and expectations of our customers. We wanted to make sure we delivered those, and we felt more comfortable at 10 days to start. We have numerous clinical efforts and R&D efforts to move the platform to 15 days for all the G7 product, and including Dexcom ONE+ in our international markets at some point in time. As we’ve said in our guidance and what we’ve done, that’s not anticipated for 2024, but it’s certainly anticipated not long after that.

So, you’ll hear and see more about that over time. The economics are quite simple. You’re selling two sensors over a 30-day period rather than three, so we can see a significant margin pick up as long as we have the proper reliability. On the other side, because if you’re shipping a sensor in a FedEx box to replace one that doesn’t work, you’ve lost all your economies of scale anyway, so we’re not only looking at 15 days, making it reliable. We’re looking very hard at offering the maximum, most efficient customer experience for individuals when we go to 15 days, so they’re ready. And so, this delivers what we’ve always delivered, because in our CSAT scores and as we survey our customers, one of the things that we always hear about is how much people value that experience and the support that we give them.

So, it’s a combination of all those things, but scientifically, we’re well down the road to having 15-day product.

Operator: And we will take our next question from Jeff Johnson with Baird. Your line is open.

Jeff Johnson: Thank you. Good afternoon, guys. Congrats on the quarter. So, I wanted to ask on basal, just any visibility you can give on how that’s been scaling, obviously, a record new start quarter. This quarter, I would assume basal is contributing nicely to that. But what do the sequential patterns look like the last few quarters? Is it still sequentially growing at a pretty healthy rate, I’d assume? But any color you can provide there. And also, there’s been some debate, obviously, on market share within the basal population here in the U.S. Just would love kind of any insights you can provide on that front as well. Thanks.

Jereme Sylvain: Yes, sure I can take that one. Thanks, Jeff. I think when we talked about what we expected this year, we really talked about it in the context of basal adoption across the entire population. And we talked about exiting the year right around that 15% adoption across the basal population in the U.S., and the year moving over the course of the year to 23%, so about eight points of penetration. So, far through the first quarter, things are going as we expected. Record new patients, I think helps enforce that. And you are correct, a good chunk of our new patients are coming through that basal channel. And we continue to see really well performance in that category. So, qualitatively, the things we talked about the excitement in that channel, those still remain.

In terms of share taking and how we look at that category we get script data, we look at script data based on pathology. The debate, there’s no debate internally to us, we know we’re taking share. And we see that data. And I think a lot of you guys see that data. So, for what it’s worth, that data is out there, you can see the scripts continuing to come our way for the purpose we talked about when we have coverage, when we compete head to head, we’ve typically won. So, I think we can we maybe disagree with some comments out there. But I think the data is clear. When you look at the script data, I think it’ll continue to demonstrate where this is going over time. Hope that helps.

Operator: And we will take our next question from Jason Bedford with Raymond James. Your line is open.

Jason Bedford: Good afternoon. Thanks. Just on Stelo. Kevin, you mentioned getting it out quickly, but you’re not launching it until the summer and certainly don’t mean to be impatient. But just outside of the Salesforce training, maybe the e-commerce setup, what else are you doing to prep for the launch? And then just does the FDA need to approve anything else? I’m thinking of an app or the like before you launch?

Kevin Sayer: No, we have full FDA approval for launch. It has been our experience over time at Dexcom. When we get a very rapid approval, we tend to become very impatient, we launch very quickly. And we’ve from time-to-time actually put ourselves in a bind by going out as quickly as we have. We had a launch plan for this product anticipating an FDA approval when it was going to come and we’re going to stick to the launch plan that we have. We have manufacturing scheduled, we have lines set up, we have molds, we have everything, packaging, everything that we need ready to go. But we’re going to stick to the plan that we have. We believe our timing is good, and there’s no need to rush anything. And so, we’re sticking to what we have and we’re comfortable with it.

Operator: We will take our next question from Malgaret Andrew with William Blair. Your line is open.

Malgaret Andrew: Hey, good afternoon, guys. Thanks for taking the questions. I wanted to hit something Kevin, I think you had said earlier in your commentary that you’re seeing growing coverage and plans for patients earlier in their care. So, I just wanted to know if you’re referencing basal, which obviously we’ve heard about is it non-insulin, pre-diabetic, non-diabetics, maybe things that are less traditional, or just three things about that. And then, and why — and then as it relates to Stelo obviously there’s ties to that, but just any sense of a number of people that have proactively reached out on your website right now to buy the product when it’s launched.

Kevin Sayer: Well, we haven’t reached out to buy it because we haven’t offered it for sale, but we certainly have a lot of inquiries. And again, as you go to media impressions, articles, interviews, unsolicited stuff, things like that, still has been the biggest offering that we’ve had as far as news. And as our reps walk into primary care doctor offices, I just spent a bunch of time with several of our field team members. That’s the question the minute they walk in the door, when am I going to see Stelo in there? And when I was in, at ATTD, it was interesting. Many of the physicians came up to me and said, how does Stelo affect me in my practice? So, there is a lot of interest, and there is a lot of buzz on that. As far as using CGM earlier in treatment, we’re certainly seeing that with basal.