Sam Boughedda

After Dexcom’s statement about possible speculations regarding an insulin delivery device manufacturer, Insulet (NASDAQ) – Tuesday’s early trading saw a 12% drop in shares of Insulet (NASDAQ) acquisitionThe company.

Bloomberg reports that Dexcom is in negotiations to buy Insulet. Bloomberg quotes people familiar with this matter.

Dexcom is a manufacturer of glucose monitoring systems that can be used to manage diabetes. They have now denied the claims and stated they were not involved in any merger discussions.

According to the company, it reviews potential opportunities for stockholder value enhancement and customer benefits creation and does not normally comment on speculation.

Dexcom issued a statement confirming that they are not currently in discussions about a merger.

Insulet stock reached a peak of $238.60 following Bloomberg’s report, but has dropped to $199.56 on Tuesday. Dexcom stock dropped below $270 last week, but trades 6.5% higher today.

Marie Thibault from BTIG stated in a press release that Dexcom shares were being pressured following the Bloomberg Report, but PODD shares had risen. Pre-market trading has seen shares reverse and close to last Monday’s closing (Dexcom is at $324.15, PODD at $23.12). In the days ahead, investors will be digesting this announcement and we anticipate shares to remain volatile.

An analyst maintained a Buy rating for Dexcom and set a price target of $540 on Dexcom.

Steven Lichtman, Oppenheimer’s CEO, isn’t surprised at the news. He said they had questioned their fit. Both companies can see how Omnipod 5 will benefit them, without the need to share a roof. Lichtman rates Dexcom Outperform and gives it a $525 target.