MDT - DexCom - Insulet buyout deal unlikely Bank of America says

Commenting on the reports that the medical device company DexCom (NASDAQ:DXCM) is in talks to acquire the insulin pump maker Insulet (NASDAQ:PODD), a group of analysts at Bank of America argues that a deal between the two diabetes players is unlikely. The Bloomberg report about discussions between the firms sent Insulet (PODD) shares sharply higher, while DexCom (DXCM) fell in the post-market Monday. However, none of the companies commented on the news. Maintaining the Overweight rating and $600 per share target on DexCom (DXCM), BofA analysts led by Travis Steed question why the company would risk executing such a massive and costly deal that would potentially dilute its equity. The analysts note that only about 8 million patients make up the insulin delivery market in the U.S., compared to DexCom’s (DXCM) potential market opportunity of more than 100 million patients. Therefore, they argue that the transaction could signal a distraction from DexCom’s (DXCM) long-term

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DexCom - Insulet buyout deal unlikely, Bank of America says