08 January 2018
Fitbit Inc shares have rallied after the company announced a partnership with glucose-monitoring device company DexCom Inc. to allow diabetics to monitor their blood sugar through Fitbit’s new smartwatch.
Fitbit stated that the collaboration would allow it and Dexcom “to develop and market products to help people better manage their diabetes and get a complete picture of their overall health with easy-to-use mobile tools.”
"With Ionic, we are focused on driving positive health outcomes and more health focused tools, and this collaboration is a wonderful example of how we plan to bring that vision to our users," said Fitbit CEO James Park in a statement.
“While we see this as an interesting strategic relationship that could help uptake in 2018, the key to the stock will be market acceptance of the Ionic amidst a crowded competitive field this holiday season,” said Stifel analyst Jim Duffy in a note Thursday. Duffy has put a “hold” rating on Fitbit with a target price of $6.
Nearly 400 million people around the globe suffer from diabetes, according to the World Heath Organization. Fitbit wearables with the new glucose monitoring feature would offer a painless method for users to check glucose levels.