The Senseonics Price Will Start to Reflect the Key Advantage of Its Product

Senseonics (NYSEAMERICAN:SENS) is a medical technology company that focuses on blood glucose monitoring systems. Its Eversense is a continuous glucose monitoring (CGM) system that promises to be a game-changer in the treatment of diabetes. Now, hype over Eversense — amplified by retail investors on Reddit — has played a huge role in SENS stock’s pricing.

Image of a hospital with workers walking in the halls
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More specifically, after spending much of 2020 languishing as a penny stock, SENS caught fire in late December. By the time the SENS frenzy peaked in mid-February, shares had posted a gain of 1190% in under two months.

SENS stock ended up giving up a chunk of that gain with a steep slide that lasted into May. However, it has staged several rallies since and currently trades in the $3 range. That’s well off its Feb. 16 high close of $5.27, but still represents over 251% growth year-to-date (YTD). Now, the current price raises the question of whether you should consider adding SENS to your portfolio.

Here’s what you should know about SENS stock moving forward.

SENS Stock: Why CGMs Are a Diabetes Game-Changer

Diabetes is a big problem and it’s only getting worse. According to the Centers for Disease Control and Prevention (CDC), 10.5% of the U.S. population was diagnosed as diabetic in 2020. That’s 34.2 million people. In addition, 88 million adults are pre-diabetic. And, those who have diabetes have an elevated risk of heart attack, stroke, lower limb amputation or even blindness. Diabetes is even a leading cause of kidney failure.

Treatment for this disease requires insulin to manage blood sugar levels. This, in turn, requires monitoring those levels. Historically, that has meant physical pin pricks through the day to test blood — a practice that can be painful, intrusive and limited in terms of data. After all, diabetics are only able to draw blood so many times a day.

But there is now another solution to the problem: CGMs. Essentially, they use an implanted sensor that constantly measures blood glucose levels, then send that data to an app or device via a transmitter. Someone wearing a CGM gets real-time data and a warning if their levels are starting to spike or drop. That’s a big deal, because they can just adjust their insulin or food intake proactively in response. So, given the size of the diabetes market, you can already see the potential for SENS stock here.

Additionally, while diabetes management is the primary goal of CGM manufacturers like Senseonics, another secondary market has developed. The market? Wellness-focused individuals — from professional athletes to tech personalities — have been popularizing CGMs. Basically, having instant blood glucose readings helps these people optimize their diets based on blood-sugar spikes.

The World’s First Long-Term Implantable Sensor

So, why the excitement over the Eversense CGM in particular? Well, it’s actually the longest-lasting sensor by far — and that’s huge. Why? Because having an implanted CGM sensor replaced is a medical procedure, an appointment that takes time and money. Competing CGMs usually have to have their implanted sensor replaced every seven to 14 days.

On the other hand, though, the Eversense CGM fluorescent sensor is the only U.S. Food and Drug Administration (FDA) approved long-term implantable sensor. In the States, it can be worn for 90 days at a time. In Europe, it can be worn for 180 days before replacement (Senseonics has applied for the 180-day window in the U.S. as well). That makes Eversense far more convenient — and cuts down on expensive, inconvenient medical appointments.     

Which would you rather use? And which option do you suppose your insurance company would rather pay for? That’s why I see big growth in the future for SENS stock.

Bottom Line on SENS Stock

At the end of June, I wrote that this Portfolio Grader “A” rated stock was worth considering, so long as you were able to stomach some continued volatility. After all, its meme-stock status all but guarantees there will be ongoing price shocks. Since then, SENS stock has shed about a dollar, helping to make my point. 

However, I still stand by my assessment that, in the long term, there’s real growth potential here. Diabetes is a massive market that’s only getting bigger. Plus, wellness is a nice side business. Senseonics’ Eversense CGM has the critical advantage of having a sensor that can remain in place for three months at a time. The company should be able to ride that advantage to market leadership and big growth.

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On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

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