The news: Apple’s secret E5 project is making major breakthroughs in developing a continuous glucose monitoring (CGM) system, per Bloomberg.
The challenge: Two companies already dominate the CGM market.
The market opportunity: Diabetes is a serious chronic condition in the US, with 37.3 million people (11.3% of the population) diagnosed in 2019, per the Centers for Disease Control and Prevention.
People with Type 2 diabetes, those who are prediabetic, or undiagnosed represent a major market opportunity that not even Dexcom or Abbott have fully tapped.
Apple’s opportunities: Apple dominates both the global and US smartwatch markets.
Our take: Assuming Apple receives approval from the Food & Drug Administration (eventually), the addition of a blood glucose monitor will likely appeal to an even larger audience than diabetics—consumers known as the “worried well,” who are very attentive to their health.
Apple has targeted the healthcare market for years, mostly through its Health Records iPhone tool and various monitoring features for the Apple Watch, such as its heart rate monitor. Getting the necessary FDA 510(k) approval for a CGM tool could take time, but not as long as the drug approval process. Competitors, you’ve been warned.
This article originally appeared in Insider Intelligence's Digital Health Briefing—a daily recap of top stories reshaping the healthcare industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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