Dexcom Leading CGM Further May 2017 1 Safe Harbor Statement This - PowerPoint PPT Presentation

Dexcom Leading CGM Further May 2017 1

Safe Harbor Statement This presentation contains forward-looking statements that are not purely historical regarding DexCom’s or its management’s intentions, beliefs, expectations and strategies for the future. All forward-looking statements and reasons why results might differ included in this presentation are made as of the date of this presentation, based on information currently available to DexCom, deal with future events, are subject to various risks and uncertainties, and actual results could differ materially from those anticipated in those forward-looking statements. The risks and uncertainties that may cause actual results to differ materially from DexCom’s current expectations are more fully described in DexCom’s annual report on Form 10-K for the period ended December 31, 2016, as filed with the Securities and Exchange Commission on February 28, 2017, its most recent quarterly report on Form 10-Q for the period ended March 31, 2017, as filed with the Securities and Exchange Commission on May 2, 2017, and its other reports, each as filed with the Securities and Exchange Commission. DexCom assumes no obligation to update any such forward-looking statement after the date of this report or to conform these forward-looking statements to actual results. 2

CGM & Diabetes Management 3

Diabetes Management Ecosystem • Blood Glucose Meters • Continuous Glucose Monitoring • Other • Pens • Disposable Pumps • Durable Pumps and Supplies • Algorithms • Outcome Measurement • Decision Support & Coaching • Clinicians • Insulins • Hospitals • Education • Other T2 Compounds • Other Medications 4

INSULIN INTENSIVE (T1+T2) Cardiovascular disease Blindness Kidney failure Nerve degeneration HEALTHY GLUCOSE RANGE Diminished cognitive function Loss of consciousness Potential death 5

INSULIN INTENSIVE (T1+T2) 1 70% Of the time patients are outside healthy range 6 1) Murata GH, Hoffman RM, Shah JH, Wendel CS, Duckworth WC: A probabilistic model for predictinghypoglycemia in type 2 diabetes mellitus: the Diabetes Outcomes in Veterans Study (DOVES). ArchIntern Med 2004;164:1445 – 1450

Intermittent monitoring Glucose (mg/dl) is not enough. 350 280 SMBG* 120 210 140 HEALTHY GLUCOSE RANGE 80 0 2 4 6 8 10 12 14 16 18 20 22 24 Time (hours) 7 *Self Monitoring of Blood Glucose (SMBG)

Intermittent monitoring Glucose (mg/dl) is not enough. 350 CGM 280 OVER 4 HOURS ABOVE 210 BEFORE SMBG 210 ABOVE 140 FOR 13.5 HOURS 140 HEALTHY GLUCOSE RANGE 80 DANGEROUS LOW FOR 1 HOUR 0 2 4 6 8 10 12 14 16 18 20 22 24 Time (hours) 8 *Self Monitoring of Blood Glucose (SMBG)

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Leading Performance Starts with Accuracy G6 raises the bar 30% 26% Dexcom System MARD* 25% by Generation Accuracy (MARD) % 20% 17% 16% 15% 13% 10% 9% 9% 8% 5% 0% STS 3-Day SEVEN SEVEN Plus G4 PLATINUM G5 Mobile G6 Single Cal G6 No Cal (2006) (2007) (2008) (2012) (2015) (Pre-Pivotal) (Pre-Pivotal) 10 * Mean Absolute Relative Difference (MARD) between CGM readings and blood glucose readings

Performance that drives outcomes DIaMonD results published in JAMA demonstrated a 1.0% reduction in mean A1c from baseline with CGM alone 3 1%-point or greater drop in A1c reduces 8.6% 8.6% long-term complication rates by ~40% 1,2 8.2% Mean HbA1c, % 8.1% 7.7% 7.6% Baseline Week 12 Week 24 Usual care CGM 11 1) Diabetes 1996;45:1289-1298; Lancet. 1998; 352:837-853. 2) American Diabetes Association. Eeg-Olofsson K, et al "HbA1c reduction and risk of cardiovascular diseases in type 2 diabetes: An observational study from the swedish NDR" ADA 2012 3) JAMA. 2017;317(4):371-378

Dexcom is the leader in continuous glucose measurement Our Strategy Performance Adherence Cost • Industry leading • Patient experience : • Longer duration performance expected New applicator, smaller sensors, next to improve with G6 & size, ease-of-use generation G7 transmitter, Verily • Connectivity : Share, • Novel business • Completely eliminate Android, insulin delivery models finger sticks & data integration 12

Non-Adjunctive Claim The first & only CGM approved by the FDA as a replacement for finger stick testing for diabetes treatment decisions 13

Dexcom has the only “therapeutic CGM” system covered by Medicare   January 12, 2017 March 24, 2017   CMS announces the determination of a benefit CMS publishes article clarifying criteria for coverage and coding of Dexcom’s G5 Mobile CGM System category and coverage for therapeutic CGM by CMS  Patients with either Type 1 or Type 2 diabetes who  Dexcom’s G5 Mobile CGM system is currently intensively manage their insulin are cleared to obtain the only CGM classified by the FDA as a non- reimbursement under Medicare & Medicaid adjunctive / “therapeutic” device 14

G6: Focused on the patient experience G5 G6 G6 G6 2/day 1 1/day 1 1/day 1 No Cal 1 ALL DATA ADULTS ALL DATA N 2263 993 646 1009 MARD 2 Overall 9% 8.1% 7.2% 8.8% %20/20 3 93% 96.1% 99.4% 95.5%  Size Reduction  1x per Day Calibration N 680 161 95 165  10 Day Use Life Day 1 MARD 2 10.7% 10.4% 7.3% 9.8%  Interference Blocking %20/20 3 84% 90.1% 100% 94.5%  Performance Improvement 1) Represents calibrations required 2) Mean Absolute Relative Difference (MARD) between CGM readings and blood glucose readings 3) Proportion of sensor values within ± 20 mg/dL of the YSI reference value for glucose levels ≤80 mg/ dL and ± 20% at YSI glucose levels >80 mg/ dL * Note: G6 data is pre-pivotal 15

The Future of CGM Technology +  Factory Calibrated  14 Day Use Life  Real-Time CGM  Single-use Transmitter  Significant Cost Reduction 1 16 1) Cost reduction targeted for second generation sensor

This is one of the largest public health crises of our time 700 PRE-DIABETES 400 MILLIONS NON-INTENSIVE TYPE 2 INSULIN INTENSIVE (TYPE 1 + TYPE 2) 0 1980 2014 2025 17 Source: NCD Risk Factor Collaboration, Published April 2016

We have made progress $700 $600 $500 Revenue ($MM) $400 $300 $200 $100 $0 2012 2013 2014 2015 2016 18

But, we have only just started US Intensive Insulin Population 1 US Total Diabetes Population 1 US CGM Current US patients CGM patients ~3 million US ~30 million patients US patients Medicare coverage 2 T1 – 300K (est.) T2 – 500K (est.) T1 / T2 CGM T1 SMBG T1 / T2 CGM T1 SMBG T2 Intensive SMBG T2 Intensive SMBG T2 Non-Intensive T2 Non-Insulin Note: Germany reimbursement decision increases OUS reimbursable patient opportunity by 500,000 intensive insulin patients. 1) Chart source: As of 2016; patient populations are approximate based on internal company estimates. 2) On January 13, 2017, the U.S. Centers for Medicare & Medicaid Services cleared Dexcom’s G5 Mobile CGM system as eligible f or Medicare & Medicaid coverage. 19

We are driving a paradigm shift in diabetes management Over time, CGM will help answer more key questions for all patients with diabetes INSULIN NON- INTENSIVE INTENSIVE (T1+T2) (T2) Is it safe to Are her lifestyle walk home from changes having an school? Go to baseball impact? practice? Is the $400/month How will his glucose medicine she is taking behave in the next few working? hours? Will she need to start Should he give himself using needles in the insulin now? near future? 20

Illustrative T2 CGM Impact 29% 3X DECREASE IMPROVEMENT IN AVERAGE IN GLUCOSE TIME-IN-RANGE Time in range 82.7% HIGH Time in range 46.9% HIGH Average glucose Average glucose 235 mg/dL 167 mg/dL 17.3% IN RANGE 52.6% IN RANGE (CGM) (CGM) 0.0% LOW 0.5% LOW 21

CGM will be a key element of cost reduction in diabetes management  Many diabetes cost questions are unanswered - When does a patient move to insulin – long-acting/fast acting? - What is the actual cost and therapeutic benefit of sophisticated insulin delivery systems? CGM? - Can we predict and identify those at risk for expensive hospitalizations and keep these patients from re-admission when they leave and shorten their stay? - Is the patient actually taking the medications that the system is providing them?  All of our future systems will be designed to produce the data necessary to answer these and many other questions  We are aiming to reduce our costs on the systems and striving to make CGM available to everyone 22

A technology that can deliver benefits to every healthcare constituent through improved outcomes and reduced costs POPULATIONS Insight on what PAYOR approaches have driven impact for others with Deeply understand similar physiology efficacy of treatment to CLINICIANS better target care to PATIENT improve outcome, while Navigate who needs more reducing cost attention; develop Navigate day to day hyperpersonalized decisions; feedback loop treatment plans for precision understanding of glucose response 23

Making it possible to change their future. 24