DexCom has signed an agreement with Google's life sciences team to jointly develop a series of next-generation continuous glucose monitoring (CGM) products for diabetes management.
Incorporating Google's miniaturised electronics platform with DexCom's best-in-class sensor technology, the new products would be smaller and less expensive than current technologies.
DexCom president Kevin Sayer said: "This partnership has the potential to change the face of diabetes technology forever.
"Working together, we believe we can introduce products that will move us beyond our core Type 1 business to become the standard of care for all people living with diabetes."
Google life sciences team head Andrew Conrad said: "This collaboration is another step towards expanding monitoring options and making it easier for people with diabetes to proactively manage their health."
Under the agreement, the companies will initially develop products that will focus on minimising the cost and size of CGM body worn components.
Designed to be disposable, the products are intended for use across all diabetes markets.
The companies aim to develop a low-cost, small, bandage-sized sensor that is connected to the cloud, and will deliver real-time and actionable information to empower more people to control their diabetes.
The partnership is expected to provide an opportunity to better use the data generated by such CGM products to improve outcomes and reduce costs associated with diabetes care.
All sales and distribution rights of the products developed under the agreement would remain with DexCom, which is also obligated to pay an initial upfront payment and milestone payments during development.
The company will also pay revenue-based royalties once these products are launched and have achieved a certain level of revenue.