- In a filing, Dexcom (NASDAQ:DXCM) notes it's entered an amended licensing agreement with Verily, the life sciences unit of Alphabet (GOOG, GOOGL), with an eye to speeding up Dexcom's work in Type 2 diabetes.
- The amendment also improves future profitability for Dexcom, the company said.
- It strengthens product development timelines for the second-generation CGM system; increases synergy with Verily's Onduo franchise, which makes Dexcom the preferred CGM device supplier; expanded options to collaborate on additional products and software; and scraps royalty payments that Dexcom would have owed.
- Dexcom will make an initial payment of $250M in stock, and additional payments of up to $280M may be due and payable with product launch and revenue milestones; up to $275M of the milestone payments may be made in stock as well.
- After hours: DXCM -1.5%; GOOG -0.3%; GOOGL -0.1%.
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