Dexcom

Dexcom’s moat is multi‑factor. Intangible assets 90/100 (25 percent weight): strong clinical brand built over two decades with firsts in iCGM and prescription‑free biosensing (Stelo), and FDA approvals such as G7 15‑Day and Smart Basal that reinforce regulatory and clinical credibility.

Switching costs 85/100 (30 percent weight): tight integrations with Omnipod 5, iLet, and Tandem ecosystems make Dexcom a preferred CGM for automated insulin delivery users, and long‑term data in Clarity plus Share/Follow networks raise inertia for patients and caregivers.

Network effects 72/100 (15 percent weight): Share/Follow enables up to 10 followers per user and provider connectivity, which increases engagement and perceived safety, modestly compounding product value as the user base grows.

Cost advantage 72/100 (15 percent weight): the 15‑day G7 improves per‑day cost and gross margin through fewer insertions and logistics touches, with additional scale from Malaysia and future Ireland manufacturing likely to reduce COGS over time. Abbott’s larger scale tempers this advantage.

Efficient scale 88/100 (15 percent weight): CGM is highly concentrated, dominated by two players with significant fixed regulatory and manufacturing barriers, which discourages smaller entrants and supports rational R&D intensity.

Weighted together, we score the moat at 83. Key erosion risks are price competition from Abbott in OTC and basal segments, regulatory oversight following the 2025 warning letter, and any integration gaps as partners update AID systems.