Dexcom picks Malaysia to produce diabetes care systems as demand soars
By Charlotte Chong
Malaysia, NNA - Dexcom Inc, which produces continuous glucose monitoring (CGM) systems for diabetes management in the United States, has picked Malaysia as its first overseas destination to build its third manufacturing site.
Headquartered in California, Dexcom has emerged as a global leader of diabetes care technology which empowers people to take control of the disease with its innovative CGM systems.
The Malaysia plant will help facilitate its expansion in the Asia-Pacific region given how quickly its international business is growing, Dexcom told NNA in an email.
An international manufacturing site would provide "logistical benefits to serve these markets,” said Dexcom, adding that its products will be exported to markets around the world.
Dexcom's revenue in the first quarter of 2020 jumped 44 percent to $405.1 million versus the same quarter of last year. U.S. revenue growth was 39 percent while international revenue grew even higher at 61 percent.
During the quarter, the company also received regulatory approvals for CGM products made with G6 technology in Australia, Japan and South Korea.
Dexcom will build its Malaysian plant at Batu Kawan Industrial Park in Penang. The company said Malaysia is an excellent fit as it has an established reputation in the medical device sector.
Quentin Blackford, executive vice president, chief financial officer and chief operating officer of Dexcom, said in a media statement, "The growing awareness of Dexcom CGM and our belief in the significant growth opportunity for our technology are driving the need for expanded manufacturing. This new site is supplemental to our existing manufacturing facilities and will help Dexcom meet the needs of global demand for CGM for years to come.”
Despite the current coronavirus pandemic, Malaysia is still attractive to investors due to its diversified economy and comprehensive ecosystem, said Datuk Seri Mohamed Azmin Ali, Malaysia's Senior Minister and Minister of International Trade and Industry.
“We hope that Dexcom’s investment here will be a boost for leaders within the industry and its supply chain network to choose Malaysia as their investment destination,” said the minister.
The Dexcom plant is expected to create significant job additions over the next ten years in Malaysia, which has seen many job losses recently as a result of the COVID-19 crisis.
Meanwhile, the World Health Organization has set a globally agreed target to stop the rise in diabetes and obesity by 2025.
About 422 million people worldwide suffer from diabetes, with 1.6 million deaths each year.
Studies have found that about 30-40 percent of COVID-19 deaths in intensive care units from various countries are people with diabetes.
Since April, Dexcom has provided its G6 CGM system temporarily for remote patient monitoring in U.S. hospitals due to the COVID-19 crisis.
The availability of CGM systems is expected to help reduce physical interaction between caregivers and patients with COVID-19.
"In addition to providing real-time glucose values, Dexcom CGM systems also display the direction and rate of glucose change, empowering healthcare providers to take proactive measures to help keep patient glucose levels in a target range," said Dexcom.