Dexcom to appoint two directors, revamp board committee with Elliott

By Siddhi Mahatole

May 14 (Reuters) – Medical device maker Dexcom said on Thursday it will appoint two independent directors and revamp a key board committee in collaboration with activist investor Elliott Investment Management.

Shares of Dexcom were up about 6% in after-hours trading.

Dexcom CEO Jake Leach said on an investor call that the company is focusing on refreshing its board and seeks to add independent directors with medtech and operations expertise, an area where it currently lacks representation, as it positions for future growth.

The company said the new appointments, to be announced at a later date, would bring the total number of independent directors appointed since early 2023 to six.

Dexcom also said its Technology Committee will be renamed the Operations and Innovation Committee, with an expanded mandate to oversee operations, quality and the company’s technical roadmap.

“We also see a clear path to significant margin expansion, underpinning one of the most compelling earnings growth profiles in MedTech,” said Marc Steinberg, partner at Elliott, in a statement.

The Centers for Medicare & Medicaid Services is expected to decide on expanding Medicare coverage for continuous glucose monitors, which could offer a boost for device makers such as Dexcom.

Leach said Dexcom does not expect the change in 2026 and sees it more likely in 2027, adding that it is prepared for an earlier rollout, which he said would be an “upside.”

Last month, the company beat Wall Street estimates for quarterly profit and revenue, however, it maintained its expectations for annual revenue in the range of $5.16 billion to $5.25 billion.

(Reporting by Siddhi Mahatole in Bengaluru; Editing by Shailesh Kuber and Shinjini Ganguli)