Diabetes device makers fall after CMS proposes bidding program changes

** Shares of diabetes device makers DexCom DXCM.O, Tandem Diabetes Care TNDM.O and Beta Bionics BBNX.O fall

** DXCM down 3.5% at $84.26 and Abbott Laboratories ABT.N marginally down; TNDM down 9.6% at $16.85 and BBNX 6.1% at $13.68

** The Centers for Medicare and Medicaid Services late on Monday proposed changes to the competitive bidding program aimed at lowering diabetes patients' copay for insulin pumps, continuous glucose monitors and other devices

** J.P.Morgan says changes would affect ABT and DXCM, who manufacture continuous glucose monitors, as well as insulin pump makers TNDM and BBNX

** Reimbursement cut could steer more distributors to ABT due to lower costs vs DXCM - says J.P.Morgan

** "We'd expect over time for CGM pricing to continue to move lower each year" - J.P.Morgan

** RBC Capital Markets says TNDM is likely to see an impact as the new proposal would allow for competitive switching and not allow these companies to lock in customers in five-year contracts

** Including sessions' moves, DXCM up 6.5%, ABT up 19.9% and TNDM down 52.7% YTD; BBNX down 40.12% since its IPO in January 2025