Averting Proxy Wars: 10 Companies Opting for Activist Investor Settlements

3. DexCom, Inc. (NASDAQ:DXCM)

Activist Investor: Elliott Investment Management

Number of Hedge Fund Holders: 55

DexCom, Inc. faced activist-investor pressure early in the year from Elliott Investment Management. The activist investor, which acquired a significant stake in the continuous glucose monitoring (CGM) manufacturer, pushed for board and operational changes.

Elliott’s activist campaign centered on improving DexCom, Inc.’s operational execution, corporate governance, and ability to capitalize on the expanding CGM market. It also reiterated that the company can sustain double-digit growth while improving margins and earnings as the CGM market expands. How is DexCom’s growth outlook?

Rather than allowing the campaign to escalate into a prolonged public battle, the company reached an agreement. Elliott secured an agreement to appoint two independent directors with experience in medical technology and large-scale operations. The company also renamed its board’s Technology Committee the Operations and Innovation Committee and expanded its focus to include quality, operations, and innovation.

Following the settlement, DexCom, Inc. has rallied, with shares up more than 20% year to date, outperforming the broader market amid heightened volatility.