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Shares of glucose-monitoring company DexCom surged nearly 10 per cent on Tuesday afternoon following US health secretary Robert F Kennedy Jr’s endorsement of medical “wearables.” Kennedy expressed his desire for all Americans to incorporate this technology into their daily lives within the next four years.
During congressional testimony, Kennedy announced that the health and human services department would launch a comprehensive advertising campaign to promote the use of wearables – medical devices that monitor blood sugar, heart rate, sleep, and other vital signs.
“We believe that wearables are essential to the Maha agenda,” Kennedy stated, referring to his “Make America Healthy Again” campaign. “My vision is for every American to be using a wearable within four years.”
Kennedy’s remarks coincide with the increasing popularity of wearables and fitness trackers among both consumers and investors. Last year, the Food and Drug Administration granted its initial approvals for certain continuous glucose monitors, including those manufactured by DexCom, for over-the-counter use. Following Kennedy’s statements, shares in Abbott Laboratories, another CGM producer, rose nearly 4 percent.
“Ozempic is priced at $1,300 per month,” Kennedy highlighted on Tuesday, referencing the weight-loss drug from Novo Nordisk. “If we can achieve similar results with an $80 wearable, it would significantly benefit the American people.”
Several members of the Trump administration have affiliations with wearable technology companies. President Donald Trump’s nominee for US surgeon general, Casey Means, co-founded health-monitoring company Levels Health, which has collaborated with DexCom for glucose monitoring. Levels Health, based in New York, has secured funding from venture capital firm Andreessen Horowitz. Additionally, Calley Means, Casey’s brother, serves as a key adviser to Kennedy.
Based in San Diego, DexCom offers adhesive patches that monitor glucose levels in real-time. While initially targeted at individuals with diabetes, their products have gained popularity among those interested in monitoring their overall health. DexCom has established partnerships with tech giants such as Apple, Garmin, and Google to integrate their patches with smart devices. Google notably acquired fitness tracker Fitbit for $2.1 billion in 2019.
Recently, DexCom enlisted the services of lobbying firm Continental Strategy, which employs Katie Wiles, the daughter of Susie Wiles, Trump’s chief of staff.
Finnish wearables company Oura Health has also been actively engaging lobbyists. Oura, known for its sleep and vital sign tracking ring, hired Ballard Partners in April, a firm with close ties to Trump. In a significant development, Oura disclosed that it had appointed its first in-house lobbyist this month.
In a funding round in December, Oura raised $200 million, elevating its valuation to $5.2 billion. DexCom participated in the investment, injecting $75 million into Oura and announcing a partnership to enable glucose data exchange between the two products.
Both DexCom and Oura have yet to respond to requests for comment.
