November 5, 2010 / 4:26 PM / 9 years ago

DexCom shares plunge after FDA seeks more data on products

BANGALORE, Nov 5 (Reuters) - Shares of DexCom Inc (DXCM.O) fell as much as 29 percent on Friday, a day after the company said the U.S. health regulator had asked for additional data related to four of its products awaiting approval.

“The regulatory delays will impact the timing of milestone payments from the company’s strategic partners, which may result in DexCom needing to raise additional capital to fund the business,” Wiliam Blair & Co analyst Ben Andrew said.

Also, Wedbush Pacgrow Lifesciences analyst Richard Lau feels that the current uncertainties could delay the approval of the products till the first quarter of 2012.

On a conference call with analysts Thursday, the company said the U.S. Food and Drug Administration had requested more data as well some clinical trials to support the approval of its Gen4 sensor, integrated insulin pumps and an intensive care unit system.

The company partners with Animas, a unit of Johnson & Johnson (JNJ.N) and Insulet Corp (PODD.O) for its insulin pumps, and with Edwards Lifesciences (EW.N) for its intensive care unit system.

However, William Blair’s Andrew believes the company will be able to raise any additional cash if needed.

As of Sept. 30, the company had $31.8 million in cash, marketable securities and restricted cash

Shares of the San Diego, California-based company, which have gained about 20 percent since its last quarterly results in August, were down 22 percent at $10.81 Friday afternoon on Nasdaq. They touched a low of $9.91 earlier in the day. (Reporting by Rajarshi Basu and Krishnakali Sengupta in Bangalore; Editing by Unnikrishnan Nair)

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