Michael Pollock

Michael Pollock from Wolfe Research posed a two-part question on gross margin: first, why the 2026 guide of 270 basis points expansion doesn't fully recover the 2025 one-timers (scrap, freight, recall) and account for 15-day product credit, and the current status of scrap and freight overhangs; second, the U.S. hardware mix of G6 vs. G7 10-day in 2025, and the projected mix including G7 15-day by end of 2026.

Answer

Jereme Sylvain, CFO of Dexcom, clarified that the one-timer impact was slightly less than estimated, with improvements playing through, but Q1 will see some spillover. He noted that the Ireland facility turning on in Q4 will shift fixed costs from OpEx to COGS, causing a gross margin decline in that quarter. Jake Leach, President and CEO of Dexcom, stated that the vast majority of the U.S. base is now on G7, with rapid declines in G6 users. He expects G6 to phase out towards mid-2026, with G7 15-day driving upgrades.

Michael Pollock asked for clarification on the Siemens Healthineers partnership for a 4D ICE catheter versus Boston Scientific's plans to launch a 2D product. He inquired how these two initiatives work together, if the partnership reflects a fresh view on the 2D product strategy, and how they will coexist as catalysts.

Answer

CMO Kenneth Stein stated it is too early to provide full details on the Siemens collaboration. He explained that the 4D product, currently in development, will be a premium offering targeting specific markets, intended to differentiate Watchman and Era Flex capabilities. The 2D ICE programs, conversely, will target a different price point within an established market, serving as a portfolio addition to Boston Scientific's overall EP offerings.

Michael Pollock from Wolfe Research asked for confirmation of Nexeo's U.S. pricing strategy relative to its competitor and inquired about what level of commitment, such as a share of patient wallet, the company asks from surgeons it trains on the GENEO system.

Answer

CEO Olivier Talman confirmed that the company will use the same CPT code and follow the associated pricing strategy, implying price parity with its competitor. Regarding surgeon commitment, he explained that instead of asking for a market share percentage, Nexeo requires physicians to identify five qualified patient cases before they are trained, ensuring they are prepared to begin implanting immediately and move through the learning curve.