Fitbit (FIT) has announced a partnership with Dexcom (DXCM) that will enable the brand’s new Ionic smartwatch to continuously monitor user glucose levels through a G5 mobile sensor, beginning in early 2018. The deal means that diabetes patients will be able to seamlessly transfer up to the minute glucose level data to their wrist for easy access. Dexcom’s G5 system for blood sugar monitoring requires users to embed a sensor just below the skin, with a compatible app providing levels updates every 5 minutes.
Howie Long-Short: Fitbit making the move from fitness tracking to health tracking is wise. The stock is at its highest price since January, when the company laid off 6% of its staff and first announced its intentions to introduce a smartwatch.
Fan Marino: Dexcom already has a partnership in place with Apple (AAPL), so this deal isn’t giving Fitbit a leg up in the smartwatch race. In fact, Apple is reportedly working on a non-invasive real-time glucose monitor for future versions of their Watch and is apparently far enough along in development that the company has begun feasibility testing.