Senseonics Takes Control of Eversense CGM Commercialization, Aims for Market Expansion

Senseonics, a leader in implantable continuous glucose monitoring (CGM) technology, has announced a strategic shift in its commercial operations, opting to bring the distribution and marketing of its Eversense CGM systems back in-house. This move marks a significant change in the company's approach to market penetration and signals confidence in the potential of its latest long-term CGM implant.

Transition from Ascensia Partnership to In-House Operations

Senseonics has struck a deal to retake control of the commercialization and distribution of its implantable continuous glucose monitors from Ascensia Diabetes Care, effective January 1, 2026. This decision ends the exclusive worldwide distribution agreement that has been in place since 2020, allowing Senseonics to directly manage its commercial efforts and potentially capture a larger share of revenue.

Tim Goodnow, CEO of Senseonics, explained the rationale behind the move: "Through this standalone strategy, we will recognize margin expansion and recaptured revenue share, which we expect will enable us to make the necessary strategic investment to drive awareness and adoption to accelerate Eversense penetration and revenue growth."

The transition is expected to be relatively smooth, with the majority of Ascensia's U.S. sales and marketing teams committed to joining Senseonics. Notably, Brian Hansen, currently the president of CGM at Ascensia, will become Senseonics' new chief commercial officer, bringing continuity to the commercial strategy.

Financial Implications and Market Strategy

The shift in commercial strategy is anticipated to have significant financial implications for Senseonics. The company projects an expansion in gross margins from around 35% at the midpoint of this year's range to 50% in 2026, with potential for further growth to 70% in the future.

To support this transition and fuel growth, Senseonics has secured a new debt facility of up to $100 million from Hercules Capital. This financial boost, combined with the recaptured revenue share, is expected to provide the necessary resources for strategic investments in marketing and sales efforts.

However, BTIG analysts caution that the potential margin improvements may be offset by increased operating expenses required to support a robust sales organization and commercial efforts. They note, "In our view, Senseonics will need a large, high-touch salesforce and marketing teams to be successful in taking meaningful share from legacy systems or to expand the CGM-using population."

Focus on Eversense 365 and Market Expansion

Central to Senseonics' strategy is the continued rollout of its one-year Eversense 365 CGM implant in the U.S. market. Launched in October 2024, this latest iteration of the Eversense system offers an extended lifespan compared to older models, which the company believes will be a key differentiator in a market dominated by competitors like Abbott and Dexcom.

Hansen reported encouraging early results, stating, "We set a record in August for the greatest number of sensor insertions in a single day this year. And August was also a record month for Eversense with the most new patient shipments in the history of Senseonics." He also noted a 79% year-over-year growth in new patient starts during the second quarter.

The company is also working on expanding its ecosystem, partnering with Sequel Med Tech to connect Eversense sensors with the new twiist insulin pump, potentially creating the first insulin delivery system powered by a one-year CGM.

As Senseonics prepares to take full control of its commercial destiny, the diabetes technology landscape appears poised for increased competition and innovation. The success of this strategic shift will likely depend on the company's ability to effectively scale its operations and capitalize on the unique features of its long-term implantable CGM technology.