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Sunday, Sep 25, 2022
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Dexcom to Pay Verily $250M in Stock Through Amended Deal

San Diego’s Dexcom will pay $250 million in stock to Verily – a subsidiary of Google parent company Alphabet – as part an amended deal.

The companies partnered on developing next-generation glucose monitoring technology due out in roughly two years.

The $250 million in stock is an upfront payment, with additional milestones of up to $280 million, dependent on product launch and revenue milestones. Dexcom may make up to $275 million of these milestone payments in shares of its common stock.

The original agreement stated Dexcom would pay royalties, a provision that has been eliminated in this updated deal.

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“Our collaboration remains on track to deliver our next generation CGM platform by the end of 2020,” said Dexcom CEO Kevin Sayer in a news release. “This updated agreement aligns Dexcom’s and Verily’s mutual interests in bringing Dexcom CGM technology to a broader diabetes population.”

The deal accelerates Dexcom’s move into Type 2 diabetes, per the companies. Dexcom’s G6 smartphone-linked monitoring system primarily serves Type 1 diabetes patients.

Dexcom is the preferred continuous glucose device supplier for Verily’s Onduo Type 2 diabetes management program, the agreement states.

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