德康醫療 (DXCM) 2015 Q3 法說會逐字稿

Welcome to the DexCom third-quarter 2015 earnings release conference call. My name is in Anna, and I will be your operator for today's call.

歡迎參加 DexCom 2015 年第三季財報發布電話會議。我叫 Anna，將擔任今天會議的接線員。

(Operator Instructions)

（接線員指示）

Please note that this conference is being recorded. I will now turn the call over to Kevin Sayer. Kevin, you may begin.

請注意，本次電話會議將被錄音。現在我將把電話交給 Kevin Sayer。Kevin，您可以開始了。

Thank you very much, and welcome, everybody to the third-quarter 2015 DexCom earnings call. We'll start off by turning the time over to Steve Pacelli with our Safe Harbor statement.

非常感謝，並歡迎各位參加 DexCom 2015 年第三季財報電話會議。我們先把時間交給 Steve Pacelli，由他宣讀我們的安全港聲明。

Thanks, Kevin. Some of the statements that we will make in today's call may constitute forward-looking segments. These statements reflect Management's expectations about future events, operating plans and performance, and speak only as of the date hereof. These forward-looking statements involve a number of risks and uncertainties. A list of the factors that could cause actual results to be materially different from those expressed or implied by any of these forward-looking statements is detailed under Risk Factors and elsewhere in our annual report on Form 10-K, our quarterly reports on Form 10-Q, and our other reports filed with the SEC. We undertake no obligation to update publicly or revise these forward-looking statements for any reason.

謝謝你，Kevin。我們今天電話會議中所作的部分陳述可能構成前瞻性陳述。這些陳述反映管理層對未來事件、營運計畫與績效的預期，且僅截至本日有效。這些前瞻性陳述涉及多項風險與不確定性。可能導致實際結果與任何前瞻性陳述所明示或暗示者存在重大差異的因素清單，已在我們的 Form 10-K 年報、Form 10-Q 季報以及向 SEC 提交的其他報告中的「風險因素」及其他章節詳述。我們不承擔因任何原因公開更新或修訂這些前瞻性陳述的義務。

Additionally, we will discuss certain financial information that has not been prepared in accordance with GAAP with respect to our cash-based operating results. This non-GAAP information is provided to enhance your overall understanding of our current financial performance. The presentation of this additional information should not be considered in isolation, or as a substitute for results, or superior to results prepared in accordance with GAAP. Kevin?

此外，我們將就以現金為基礎的營運結果，討論若干未依 GAAP 編製的財務資訊。提供此非 GAAP 資訊旨在增進您對我們目前財務表現的整體理解。此額外資訊之呈現不應被孤立看待，亦不應視為依 GAAP 編製結果的替代，或優於依 GAAP 編製的結果。Kevin？

Thank you, Steve. Joining me today are Jess Roper, our Chief Financial Officer, and Steve Pacelli, our Executive Vice President of Strategy and Corporate Development. Before I turn the call over to Steve to review our financial results, I would like to provide you with some additional color regarding our pre-release a few weeks ago, as I'm confident that many of you are taken a bit by surprise when we announced our Q3 sales numbers and provided some commentary on our payer relationships.

謝謝你，Steve。今天與我一同出席的有我們的財務長 Jess Roper，以及策略與企業發展執行副總裁 Steve Pacelli。在我把電話交給 Steve 檢視我們的財務結果之前，我想就幾週前我們的預先發布提供一些補充說明；我相信當我們公布第三季銷售數字並就我們與付款方（payer）的關係提供一些評論時，許多人都感到有些意外。

On the morning of October 14, a report was issued indicating that we were having trouble processing United Healthcare and Anthem patients under the provisions of our new pharmacy contracts. The investment community reacted to this immediately, and we were flooded with calls. As we have said on numerous occasions, payer relationships are challenging. Our efforts is to remind payer operations are never-ending, and we remain fully committed to moving our business primarily to the pharmacy channel over the next few years, to increase access to CGM and develop more scalable business processes for the long-term.

10 月 14 日上午，有一份報告指出，我們在依據新藥局合約條款處理 United Healthcare 與 Anthem 病患時遇到困難。投資界立即對此作出反應，我們接到大量來電。正如我們多次所說，與付款方的關係具有挑戰性。我們的努力在於提醒大家，付款方營運端的工作永無止境；我們仍全力致力於在未來幾年將業務主要轉移至藥局通路，以提升 CGM 的可近性，並為長期建立更具可擴展性的業務流程。

In this instance, because of the confusion created by this report, we felt it was appropriate to alleviate market concerns, pre-release of our Q3 revenues, and provide some additional color regarding our payer relationships. Rest assured we will not make this a regular policy. More from me later. I'll turn the call back over to Steve.

在此情況下，由於該報告造成的混淆，我們認為有必要緩解市場疑慮，提前發布第三季營收，並就我們與付款方的關係提供更多背景說明。請放心，我們不會把這當作例行政策。我稍後會再補充。現在我把電話交回給 Steve。

Thanks, Kevin. DexCom reported revenue of $105 million for the third quarter of 2015 compared to $69 million for the same quarter in 2014, a $36 million, or 52% increase. Sequentially, revenue for Q3 of 2015 increased $12 million, up 13% from the prior quarter. Our gross profit totaled $75 million, generating a gross margin of 71% for the third quarter of 2015, compared to a gross profit of $47 million and a gross margin of 68% for the same quarter in the prior year.

謝謝你，Kevin。DexCom 2015 年第三季營收為 1.05 億美元，較 2014 年同期的 6,900 萬美元增加 3,600 萬美元，增幅 52%。按季比較，2015 年第三季營收較前一季增加 1,200 萬美元，成長 13%。我們的毛利合計 7,500 萬美元，2015 年第三季毛利率為 71%；相較之下，前一年同期毛利為 4,700 萬美元、毛利率為 68%。

Let's take this opportunity to give clarity on the Q3 financial impact of our sooner than expected FDA approval of G5 Mobile. Under the terms of the upgrade program we previously announced, all US patients who purchased a G4 Platinum with Share System in the 30 days prior to our public announcement of the approval of G5 Mobile until our commercial launch have the right to receive a free upgrade to the G5 Mobile. This upgrade program required us to defer $800,000 of revenue in Q3 related primarily to upgrade transmitters which were not shipped prior to quarter's end. However, we expect to recognize this revenue in Q4 as we shift the balance of G5 Mobile upgrades. We are now at the upper end of our gross margin targets on our sensor disposables and on our hardware, but we remind investors that our gross margin on hardware should be slightly lower for a period of time due to the introduction of the G5 Mobile transmitter which has a shorter useful life and a lower ASP.

我們也藉此機會釐清 G5 Mobile 取得 FDA 核准早於預期，對第三季財務的影響。依據我們先前公布的升級方案條款，所有在我們公開宣布 G5 Mobile 核准前 30 天內購買 G4 Platinum with Share System 的美國病患，直到我們商業化上市為止，皆有權免費升級至 G5 Mobile。此升級方案使我們在第三季遞延 80 萬美元營收，主要與截至季末尚未出貨的升級用發射器相關。然而，隨著我們在第四季轉移（出貨）剩餘的 G5 Mobile 升級，我們預期將在第四季認列該營收。我們目前在感測器耗材與硬體的毛利率目標上已接近上緣，但也提醒投資人，由於導入使用壽命較短且平均售價（ASP）較低的 G5 Mobile 發射器，硬體毛利率在一段期間內可能會略低。

Some final thoughts on our revenues and our gross profits. Our mix between durable and consumable products remains steady at approximately 30% durable and 70% consumable. ASP for sensors fell within a range of $70 to $75 per sensor and the ASP for our hardware was approximately $800 for $850 per starter kit. We do note that a quarter-to-quarter variability within these ASP ranges stems from our ever-changing payer mix, including direct DME contracts, third-party DME contracts and pharmacy contracts.

關於我們的營收與毛利的最後幾點說明。我們在耐久財與耗材產品之間的組合維持穩定，約為 30% 耐久財、70% 耗材。感測器的 ASP 落在每個 70 至 75 美元區間；硬體的 ASP 約為每套入門套組 800 至 850 美元。我們也注意到，這些 ASP 區間在季度間的波動，源自我們不斷變化的付款方組合，包括直接 DME 合約、第三方 DME 合約以及藥局合約。

Finally, our international business continued to perform, representing $14 million, or 13% of our revenues in the quarter. We also note that our split between hardware and sensors OUS is similar to our split in the US. Research and development expense totaled $65 million for Q3 of 2015, which included a non-cash charge of $36.5 million related to our license of certain technology from Google Life Sciences, pursuant to which we issued 404,591 shares of common stock. Excluding this one-time upfront payment to Google, R&D expense totaled $28 million for Q3 compared to approximately $19 million in Q3 of 2014, with the increase due primarily to additional payroll-related costs and expenses related to work on our near-term product pipeline and work on our advanced product pipeline.

最後，我們的國際業務持續表現良好，本季貢獻 1,400 萬美元，占營收 13%。我們也指出，海外（OUS）硬體與感測器的拆分與美國市場相近。2015 年第三季研發費用合計 6,500 萬美元，其中包含一筆 3,650 萬美元的非現金費用，係因我們向 Google Life Sciences 授權取得特定技術，並依此發行 404,591 股普通股所致。排除對 Google 的一次性預付費用後，第三季研發費用為 2,800 萬美元，較 2014 年第三季約 1,900 萬美元增加；增加主要來自額外的人事相關成本，以及我們在近期產品管線與先進產品管線上的工作費用。

Selling, general and administrative expense totaled $52 million in Q3 of 2015 compared to $34 million during the same quarter in 2014, with the increase due primarily to year-over-year increases in headcount in our organization, including both field sales and internal sales support staff, as well as additional marketing expenses in connection with our awareness campaign and some investment in our IT infrastructure.

2015 年第三季銷售、一般及行政費用合計 5,200 萬美元，較 2014 年同期的 3,400 萬美元增加；增加主要來自我們組織人力編制的年增，包括外勤銷售與內部銷售支援人員，以及配合我們的認知提升（awareness）活動所增加的行銷費用，並對 IT 基礎設施進行部分投資。

Our net loss for the third quarter of 2015 totaled $42.5 million, which included $62 million in non-cash expenses centered primarily again in one-time $36.5 million charge related to the Google transaction, as well as $22.6 million in non-cash share-based compensation expense across all functional areas of our business. Absentee these non-cash charges, cash-based net income was $20 million for Q3, representing 19% of revenues, or put another way, 100% increase over cash days net income in Q3 2014 of $10 million.

2015 年第三季淨損合計 4,250 萬美元，其中包含 6,200 萬美元的非現金費用，主要仍集中在與 Google 交易相關的一次性 3,650 萬美元費用，以及涵蓋我們各職能領域的 2,260 萬美元非現金股份基礎給付（share-based compensation）費用。若排除這些非現金費用，以現金為基礎的淨利為 2,000 萬美元，占營收 19%；換句話說，較 2014 年第三季 1,000 萬美元的現金基礎淨利增加 100%。

Our loss per share for the quarter was $0.53. Again, absent the non-cash charge related to our Google transaction, our loss per share for the quarter was $0.07.

本季每股虧損為 0.53 美元。同樣地，若排除與 Google 交易相關的非現金費用，本季每股虧損為 0.07 美元。

With respect to our balance sheet, we ended the third quarter with $113 million in cash and marketable securities, an increase of $16 million from Q2 of this year. And consistent with past practices, we take this opportunity to update our full-year revenue guidance. We are now comfortable that our revenue for the full will exceed the top end of our range of $375 million.

就資產負債表而言，我們在第三季末持有 1.13 億美元的現金及有價證券，較今年第二季增加 1,600 萬美元。並且依循過往作法，我們也藉此更新全年營收指引。我們現在有信心，全年營收將超過我們區間上緣的 3.75 億美元。

Before I turn the call over to Kevin, I would like to add some additional color around our OpEx spend for the balance of this year and into 2016. Yes, we are continuing to make a significant investment in our future. We have seen exceptional growth since the launch of G4 Platinum in 2012, and we have clearly demonstrated that technology innovation is key to driving this growth. We will continue to take advantage of near-term opportunities to invest in our core business, with system performance improvements such as improved accuracy, extended duration and reduced calibration. Work on our advanced integrated insulin delivery systems, and simplification of our sensor deployment through a new applicator. And we are engaged in numerous clinical trials necessary to demonstrate improved outcomes and lower cost to drive favorable payer policies.

在我把電話交給 Kevin 之前，我想就今年剩餘期間以及進入 2016 年的營業費用（OpEx）支出再補充一些背景。是的，我們仍在對未來進行重大投資。自 2012 年推出 G4 Platinum 以來，我們已見到卓越成長，並清楚證明技術創新是推動此成長的關鍵。我們將持續把握近期機會投資於核心業務，包括透過提升準確度、延長使用時間與降低校正需求等方式改善系統效能；推進我們先進的整合式胰島素輸送系統；並透過新的施用器簡化感測器部署。我們也正在進行多項必要的臨床試驗，以證明更佳的臨床結果與更低的成本，從而推動付款方制定更有利的給付政策。

Beyond our core business, we have several key initiatives that will require additional investment through the balance of this year and into next. We will look to expand our manufacturing capacity and continue to automate our manufacturing operations to meet ever-increasing demand. We need to invest in our advanced technology development efforts with Google. We anticipate growing our foreign operations, particularly as we see reimbursement evolving outside the US. And we need to invest in our data and analytics platforms, as we see this is a key differentiator for DexCom going forward.

除了我們的核心業務之外，我們還有數項關鍵計畫，將需要在今年剩餘期間以及延伸至明年投入額外資金。我們將尋求擴大製造產能，並持續自動化製造作業，以滿足持續攀升的需求。我們需要投資於與 Google 的先進技術開發工作。我們預期海外業務將成長，特別是在我們看到美國以外的給付（reimbursement）制度正在演進之際。此外，我們也需要投資於資料與分析平台，因為我們認為這將是 DexCom 未來的重要差異化優勢。

Of course, we can never forget that are obligations to patients come first. And we will make sure that we invest in resources to bring our technology to as many new patients as possible and serve our existing patients appropriately. With that, I'll turn the call back over to Kevin for a business update. Kevin?

當然，我們永遠不能忘記，對病患的義務永遠是第一位。我們將確保投入資源，讓我們的技術能觸及盡可能多的新病患，並以適當方式服務現有病患。接下來我把電話交回給 Kevin，請他提供業務更新。Kevin？

Thank you, Steve. We've had a very exciting first three quarters of 2015. Since January, we've introduced the G4 Platinum with Share, apps to enable CGM display on the Apple Watch, we entered into an extremely exciting collaboration with the Life Sciences team at Google, and we launched our G5 Mobile CGM system both in US and in Europe. On top of all that, we've had a $96 million increase, or 55% increase, year to date in sales and a $27 million, or 155%, year-to-date increase in cash-based net income. Not a bad nine months.

謝謝你，Steve。2015 年前三季對我們而言非常令人振奮。自 1 月以來，我們推出了具備 Share 功能的 G4 Platinum、可在 Apple Watch 上顯示 CGM 的應用程式、與 Google 生命科學團隊展開極具吸引力的合作，並在美國與歐洲同步推出 G5 Mobile CGM 系統。除此之外，我們年初至今銷售額增加 9,600 萬美元（成長 55%），以現金基礎計算的淨利年初至今增加 2,700 萬美元（成長 155%）。九個月的表現不算差。

Our G5 Mobile system is the first and only CGM system approved by the FDA for both adults and children as young as two years of age that sends glucose data directly to a smartphone, freeing users from the need to carry a separate receiver. Response from the diabetes community for mobile connectivity has been exceptional. Demand from new patients is at an all-time high. We have received numerous letters, emails, and messages of gratitude for this latest technology advance. We also now receive much more advice from our patients on how to make the experience on the (technical difficulties) better, much of which we will consider in the future.

我們的 G5 Mobile 系統是第一個也是唯一一個獲 FDA 核准、適用於成人以及最小至 2 歲兒童的 CGM 系統，可將葡萄糖數據直接傳送到智慧型手機，讓使用者不必再攜帶獨立的接收器。糖尿病社群對行動連線功能的反應非常熱烈。新病患需求創下歷史新高。我們收到許多信件、電子郵件與訊息，對這項最新技術進展表達感謝。我們現在也從病患那裡收到更多建議，告訴我們如何讓（技術問題）上的體驗更好，其中許多我們未來都會納入考量。

As you know, we received approval for this product in late August. And while our initial production plans were targeting a Q4 2015 launch, we made the decision not to delay and began shipping in September. We also initiated an upgrade program whereby all users of a G4 Platinum system with Share from August 1, 2015 until we commenced shipping the Q5 mobile system are eligible to receive a no-cost upgrade to G5. We're also offering a low-cost cash upgrade to the G5 Mobile system for those patients who are still under warranty with their existing systems. I would add that this upgrade program has had a much greater response than previous programs of this nature.

如各位所知，我們在 8 月下旬取得該產品核准。雖然我們最初的生產計畫目標是於 2015 年第四季上市，但我們決定不延後，並於 9 月開始出貨。我們也啟動升級方案：凡於 2015 年 8 月 1 日起至我們開始出貨 G5 Mobile 系統期間購買具 Share 功能之 G4 Platinum 系統的所有使用者，皆可獲得免費升級至 G5 的資格。我們也為仍在既有系統保固期內的病患提供低成本的現金升級至 G5 Mobile 系統。我補充一下，這項升級方案的反應遠高於以往同類型方案。

The combination of an earlier than expected launch, exceptional demand and a well-received upgrade program have put a lot of pressure on our manufacturing operations. As a result, we've experienced some transmitter inventory challenges over the past several weeks, which have resulted in some shipping delays to new patients and has limited our ability to quickly fill upgrades to existing patients. We're confident that our transmitter inventory challenges will be resolved in the coming weeks, and they should not have any impact on our fourth-quarter performance.

比預期更早的上市、強勁的需求以及廣受好評的升級方案，使我們的製造作業承受很大壓力。因此，過去幾週我們在發射器（transmitter）庫存方面遇到一些挑戰，導致對新病患的出貨出現部分延遲，也限制了我們快速完成對既有病患升級訂單的能力。我們有信心在未來幾週內解決發射器庫存挑戰，且這不應對我們第四季表現造成任何影響。

A few additional points of interest on G5 Mobile. Like its predecessor, the G4 Platinum with Share, users can also select up to five designated recipients or followers who can remotely monitor a patient's glucose information and receive alert notifications from almost anywhere. We plan to launch the Android version of G5 Mobile next year, and note that the Android follow application is already available. Our G5 Mobile launch in Europe not only introduce connectivity to this market, but the CE Mark G5 Mobile is the first ever continuous glucose monitor that does not require confirmatory finger sticks when making treatment decisions, although a minimum of two finger sticks a day remain necessary for calibration.

關於 G5 Mobile 還有幾點值得注意。與前一代具 Share 功能的 G4 Platinum 一樣，使用者也可選擇最多五位指定接收者或追蹤者，讓他們幾乎在任何地方都能遠端監測病患的葡萄糖資訊並接收警示通知。我們計畫於明年推出 G5 Mobile 的 Android 版本，並請注意 Android 的追蹤（follow）應用程式已可使用。我們在歐洲推出 G5 Mobile，不僅為該市場帶來連線功能；此外，取得 CE 認證的 G5 Mobile 也是史上第一款在做出治療決策時不需要以指尖採血作確認的連續血糖監測器，儘管每天至少仍需兩次指尖採血以進行校正。

We have always said that CGM will ultimately be the standard of care in diabetes management. We see a clear path to the day when the only reason to take a finger stick will be to calibrate your sensor for a safety check to ensure proper sensor -- or for a safety check to ensure proper sensor performance. With G5 Mobile, we are now receiving millions of real-time data points each day. We are expanding our data analytics team to develop platforms that will make CGM even more valuable to patients, healthcare providers and payers.

我們一直認為，CGM 最終將成為糖尿病管理的標準照護。我們清楚看到一條路徑：未來指尖採血的唯一理由將是為了校正感測器，或作為安全檢查以確保感測器表現正常——或作為安全檢查以確保感測器表現正常。透過 G5 Mobile，我們現在每天收到數以百萬計的即時資料點。我們正在擴編資料分析團隊，以開發平台，讓 CGM 對病患、醫療照護提供者與支付方更具價值。

Finally, with G5 Mobile we also launched the first phase of our CLARITY cloud-based data platform, which was developed by our Portland-based software development team. Patients can now get an intuitive retrospective view of their CGM data right on their phone without the need to plug a receiver into a computer or visit their physician for a data download. The first version of Clarity is geared primarily for patients. Future feature sets will be added to provide healthcare professionals with more advanced tools. And we will ultimately have a CLARITY payer platform as well.

最後，隨著 G5 Mobile，我們也推出了 CLARITY 雲端資料平台的第一階段，該平台由我們位於波特蘭的軟體開發團隊打造。病患現在可直接在手機上以直覺方式回顧其 CGM 資料，而無需將接收器連接到電腦或前往醫師處下載資料。Clarity 的第一版主要面向病患。未來將加入更多功能組合，為醫療專業人員提供更進階的工具。而我們最終也會推出 CLARITY 的支付方平台。

Obviously with ever-increasing demand comes ever-increasing revenue aspirations for the balance of this year, and especially in 2016. So we continue to invest in the commercial side of our business. Our number one priority is to increase awareness. Our initial DTC campaigns for G5 Mobile are beginning to roll out this month. While early feedback is encouraging, it is much too early to report anything more than that. Future DTC investments will be evaluated based on the results of our initial campaigns, which extend through the first half of next year.

顯然，需求持續增加也意味著今年剩餘期間、尤其是 2016 年，我們對營收的目標也將持續提高。因此，我們持續投資於商業端。我們的首要任務是提升認知度。我們針對 G5 Mobile 的初期 DTC（直接面向消費者）行銷活動本月開始陸續推出。雖然早期回饋令人鼓舞，但現在仍遠遠太早，無法報告更多內容。未來的 DTC 投資將依據初期活動的成果進行評估，而這些活動將延續至明年上半年。

We continue to -- we need to continue to drive awareness in the healthcare community as well. In connection with the launch of G5 Mobile, I have spent several days in the field over the past few months, and I believe we are in a much stronger position with healthcare professionals than we have ever been. But there is still a lot of work to do. CGM first rings true for many, but not enough. We want to further simplify and expand access for our patients.

我們也持續——我們需要持續在醫療照護社群中推動認知度。配合 G5 Mobile 的上市，過去幾個月我花了好幾天在第一線拜訪，我相信我們在醫療專業人員中的地位比以往任何時候都更強。但仍有大量工作要做。對許多人而言，CGM 的價值確實成立，但仍不足夠。我們希望進一步簡化並擴大病患的取得管道。

Pharmacy benefit is the future for us. While we have more than achieved our internal 2015 goal related to the number of covered lives under pharmacy benefit, we have also learned that entering into a pharmacy contract is just the beginning, and not without administrative pitfalls. A couple of examples include inconsistent application of pre-authorization policies and failure of individual plans to actually move reimbursement from DME to pharmacy, in spite of the contract.

藥局給付（pharmacy benefit）是我們的未來。雖然我們不僅達成、甚至超越了內部 2015 年關於藥局給付涵蓋人數（covered lives）的目標，但我們也了解到，簽訂藥局合約只是開始，而且並非沒有行政上的陷阱。舉例來說，包括事前授權（pre-authorization）政策的適用不一致，以及儘管已有合約，個別保險計畫仍未真正將給付從 DME（耐用醫療設備）轉移至藥局。

Also, there is a common misperception in the investment community that our move to the pharmacy will disrupt our pricing models. This has simply not been the case. And we note that in many instances where we see increased -- we note that in many instances we see increased pricing with the direct -- contract for pharmacy benefit versus pricing with the payer with a third-party DME distributor.

此外，投資界普遍存在一種誤解，認為我們轉向藥局通路將會破壞我們的定價模式。事實並非如此。我們也指出，在許多情況下，我們看到——我們指出，在許多情況下，相較於支付方透過第三方 DME 經銷商的定價，我們在藥局給付的直接合約下反而看到更高的定價。

But above all, in my travels it becomes abundantly clear that we need Medicare approval for adults and Medicaid approval, especially for children. For Medicare, we continue to work on all fronts, administrative, legislative and judicial. We work state by state with Medicaid plans, and continue to see advancement, but we need to do more.

但最重要的是，在我走訪各地時非常清楚地看到，我們需要取得 Medicare 對成人的核准，以及 Medicaid 的核准，尤其是針對兒童。就 Medicare 而言，我們持續在行政、立法與司法各層面同步推進。我們也逐州與 Medicaid 計畫合作，並持續看到進展，但我們還需要做得更多。

Turning to the Google relationship we entered into this quarter, our objectives for this development are far-reaching. We intend to work together to develop simple low-cost sensor assistance integrated into advanced data analytics platforms to improve diabetes care from pre diabetes all the way through intensive insulin therapy. We expect these advances will make diabetes management much more convenient and flexible than ever before, and we are excited for the promise this technology holds for patients and caregivers.

談到我們本季建立的 Google 合作關係，我們對這項開發的目標相當深遠。我們打算共同開發簡單、低成本的感測器輔助方案，並整合至先進的資料分析平台，以改善從糖尿病前期一直到密集胰島素治療的糖尿病照護。我們預期這些進展將使糖尿病管理比以往任何時候都更便利、更具彈性，我們也對這項技術為病患與照護者帶來的承諾感到振奮。

Turning to our core internal product pipeline. We continue to make progress on our advanced sensor technologies, including Gen 6 and beyond. Activities related to an FDA-approved insulin dosing claim continue to evolve, and we continue to have discussions with the FDA regarding the data that will be required both pre- and post-market to support such a claim. We need to finalize the requirements before offering more specific guidance regarding the timing of both the dosing claim and G6, as we have no intention of ever moving backwards from a non-adjunctive claim once we establish it.

接著談我們核心的內部產品研發管線。我們在先進感測器技術方面持續取得進展，包括第六代（Gen 6）及後續版本。與 FDA 核准的胰島素劑量（insulin dosing）宣稱相關的工作仍在演進，我們也持續與 FDA 討論，為支持此類宣稱在上市前與上市後所需的資料。我們需要先敲定相關要求，才能就劑量宣稱與 G6 的時程提供更具體的指引，因為一旦我們建立非輔助性（non-adjunctive）宣稱，我們無意在任何時候倒退。

We continue to make good progress on the next insertion system, a new lower cost, high-quality receiver, and several generations of transmitters, all designed to be more convenient for our patients and to reduce costs for DexCom. The new insertion system will be used initially with the G5 sensor and algorithm. From an operations perspective the new insertion system is one of the most complicated tasks we have ever taken on, but we are confident it will be a great experience for our patients. We plan to launch both the new receiver and the new insertion system in the US in the second half of next year.

我們在下一代插入系統、一款全新低成本且高品質的接收器，以及數代發射器的開發上持續取得良好進展；這些產品皆以提升病患使用便利性並降低 DexCom 成本為設計目標。新的插入系統將先與 G5 感測器與演算法搭配使用。從營運角度來看，新的插入系統是我們迄今承接過最複雜的任務之一，但我們有信心它將為病患帶來極佳的使用體驗。我們計畫在明年下半年於美國同時推出新的接收器與新的插入系統。

We continue to study sensors with no calibration requirement. And based upon the performance we have seen with our advanced sensor technologies and the capabilities of our next-generation algorithm platform, we continue to believe that calibrations can be completely eliminated in the future. We are also making significant investments in next-generation apps with additional features and functionality for our patients. With respect to our pump partners, J&J and Tandem have reported their results and appear to be pleased with their G4 Platinum-enabled product launches. Continued development by the existing commercial pump companies and by several early-stage companies is promising but have not been major drivers of our revenues year to date.

我們持續研究不需要校正的感測器。根據我們在先進感測器技術上的表現，以及下一代演算法平台的能力，我們仍相信未來可以完全取消校正。我們也正大幅投資於下一代 App，為病患提供更多功能與特性。就我們的幫浦合作夥伴而言，J&J 與 Tandem 已公布其成果，且似乎對其支援 G4 Platinum 的產品上市表現感到滿意。現有商用幫浦公司以及數家早期公司持續推進的開發令人鼓舞，但截至目前為止，尚未成為我們今年迄今營收的主要驅動因素。

One final note. As we look towards the second half of next year, it appears that we will have early data from our DIAMOND study and European studies to demonstrate the therapeutic and cost benefit of full-time CGM use, regardless of the method of insulin delivery. So stay tuned.

最後補充一點。展望明年下半年，我們看起來將取得 DIAMOND 研究與歐洲研究的早期數據，用以證明不論胰島素輸送方式為何，全時段使用 CGM 具有治療效益與成本效益。敬請期待。

I'd now like to open up the call for questions.

我現在想開放電話會議進入提問。

Thank you.

謝謝。

(Operator Instructions)

（接線員指示）

Ben Andrew, William Blair.

Ben Andrew，William Blair。

Good afternoon, guys. Thank you for taking the questions.

各位下午好。謝謝你們接受提問。

You bet.

沒問題。

First off, talk a little bit more, Steve, about the operating expense trajectory, [or maybe guess]. You've been kind of growing $10 million, $11 million sequentially each quarter this year. Does that pace look about right for several quarters, or should things taper as you've had the [bolus], because there's a whole bunch of moving pieces, obviously, on the development and the DTC side in the next several?

首先，Steve，請再多談一點營運費用的走勢，[或許猜測一下]。今年每一季你們的費用大概都以季增 1,000 萬到 1,100 萬美元的幅度在成長。這樣的速度在接下來幾季看起來是否大致合理？還是說在你們已經有了[衝量]之後，增幅會趨緩？因為顯然在接下來幾季，研發與 DTC 端都有很多變動因素。

Ben, this is Kevin. I'll grab that one real quick. One of the big growth factors obviously has been our non-cash expenses, particularly the stock compensation because the stock has performed so well. Those numbers were much bigger than we had anticipated, and certainly much bigger than we'd had a year ago.

Ben，我是 Kevin。我先快速回答這題。很大的成長因素之一，顯然是我們的非現金費用，特別是股票酬勞，因為股價表現非常好。這些數字遠高於我們原先預期，當然也比一年前大得多。

As far as the increases in our quarter-to-quarter spending, again there are moving pieces and we continue to make investments. A perfect example is the investments we made in the DTC campaign this quarter where we spent in excess of $2 million just getting geared up for the start. And there are other things that we spent on the R&D side, the data opportunity and things like that.

至於我們每季支出逐季增加的幅度，同樣有許多變動因素，我們也持續投資。最好的例子就是本季我們在 DTC 活動上的投資，光是為了啟動前的準備，我們就花了超過 200 萬美元。此外在研發端，我們也投入在資料機會以及諸如此類的事項上。

I would tell you, as you look forward next year, the best answer I can give you, that we are going to be a little more transparent on expenses and a little more firm as give our guidance at the start of the year. We aren't going to quit investing. And as I said in my remarks earlier, we've certainly increased our cash-based net income at a more rapid rate than we have grown, but we've also turned around and spent what we can to position us for future periods. And that is where we sit today.

我會告訴你，展望明年，我能給的最佳答案是：我們會在年初提供指引時，對費用揭露得更透明，也會更明確。我們不會停止投資。正如我先前發言所說，我們的現金基礎淨利成長速度確實快於營收成長，但我們也回頭把能花的錢投入，以便為未來期間做好布局。這就是我們目前的狀況。

Okay. And then on the G5 launch you shipped a few units in September, and obviously more since. What is the near early user experience of the device? I know Bluetooth can be a little trippy, but that combined with some early feedback, what are you hearing from customers and what are you seeing in terms of pipeline of demand as the launch is progressing?

好的。接著談 G5 上市，你們在 9 月出貨了少量機台，之後顯然出貨更多。這個裝置在早期使用者的體驗如何？我知道藍牙有時會有點棘手，但結合一些早期回饋，你們從客戶那邊聽到什麼？隨著上市推進，你們在需求管線方面看到什麼情況？

Well, pipeline of demand has been exceptional. Our opportunities coming into our system every day are much higher than we've ever experienced before. So demand has been great. The patient experience, and you're right, Ben, Bluetooth can be a little bit tricky. That is one of the thing that we have learned here.

嗯，需求管線非常強勁。我們每天進入系統的商機都比以往任何時候高得多，所以需求很旺。至於病患體驗，你說得對，Ben，藍牙確實可能有點棘手。這是我們在這裡學到的其中一件事。

As we have gone through and analyzed the data -- the best part of this is we get all of the data points every day. As we've gone through and looked at the data, other than when it appears to us in data analytics that people have walked away from their phones, our data capture rate is pretty much equivalent to what we had with the old receiver. We've learned a few other things that have gone on. For example, that 30-foot range that we experienced with the G4 receiver, a lot of the patients don't experience that with Bluetooth and with the phone.

當我們分析資料時——最棒的是我們每天都能取得所有資料點。當我們檢視資料後，除了在資料分析上看起來像是使用者把手機帶離身邊的情況之外，我們的資料擷取率大致上與舊接收器相當。我們也學到一些其他狀況。例如，以前使用 G4 接收器時我們有體驗到約 30 英尺的距離，但很多病患在使用藍牙與手機時並沒有同樣的體驗。

Remember, that phone has radios that's geared to do a number of tasks. You've got WiFi, regular Bluetooth, Bluetooth LE, and a number of things. So depending upon how certain individuals use their phone, there can be things that behave a little bit differently. We have to really gear up our tech services people for calls that are different than what they've had to deal with before. It's been good. We've learned a lot. You cannot learn these things until you get out there. We're really glad that we've launched it. We have software upgrades coming in the future that we think can address any concerns we have.

請記得，手機有多種無線電模組，用來執行多項任務。你有 WiFi、一般藍牙、藍牙低功耗（Bluetooth LE）以及其他功能。因此，取決於不同個人如何使用手機，某些行為可能會略有不同。我們必須讓技術服務團隊充分準備，去應對與以往不同的來電。整體而言是好的，我們學到很多；在真正推出之前，你無法學到這些。我們很高興已經上市。未來我們也會推出軟體升級，我們認為可以解決我們所關切的任何問題。

The experience with that patients as far as just looking at the phone and the interaction has been fabulous. This is the first ever Class III medical device without a printed user guide. The user guide's on the phone. If somebody has a question, they can touch the screen, they can get the user guide. They can watch videos on their phone as to how to insert their product and how to deal with it. It has been a great experience from an actual interface perspective. And very well accepted, particularly by our young patients. We have had parents call us up who'd bought G4 for their kids before, and their kids wouldn't wear it because they wouldn't carry the receiver, who will now take this and look at it on the phone all the time. The experience has been by and large good. We have learned a lot. It really starts us with a whole new future.

就病患單純看手機與互動的體驗而言，表現非常出色。這是第一個沒有印刷版使用手冊的第三類醫療器材；使用手冊就在手機上。若有人有問題，他們可以觸控螢幕就取得使用手冊；也可以在手機上觀看影片，了解如何插入產品以及如何使用。從實際介面角度來看，這是很棒的體驗，而且接受度很高，尤其是年輕病患。我們接到一些家長來電，他們之前為孩子買了 G4，但孩子不願意配戴，因為不想攜帶接收器；現在孩子會使用這個，並且一直在手機上查看。整體體驗大致良好。我們學到很多，這也真正為我們開啟了全新的未來。

Mike Weinstein, JPMorgan.

Mike Weinstein，JPMorgan。

This is Robbie Marcus in for Mike. Congrats on the great quarter, guys. I was wondering, can you give us more color into third-quarter trends? It came in well above where the Street was thinking. This was almost entirely without the G5 impact. Can you give us a little more insight into what drove those trends?

我是代替 Mike 的 Robbie Marcus。恭喜各位本季表現很棒。我想請問，你們能否提供更多第三季趨勢的細節？結果遠高於市場原先預期，而且幾乎完全沒有 G5 的影響。能否多分享一些是什麼驅動了這些趨勢？

And then transitioning into the G5 launch, this is the first time that pediatrics will have access to the AP algorithm. What are you seeing there so far in the early launch, and how do you expect that to play out over the coming timeframes? Thanks.

另外轉到 G5 上市，這是兒科首次能使用 AP 演算法。你們在早期上市階段目前看到什麼情況？你們預期接下來一段時間會如何發展？謝謝。

So, Robbie on the first part, what we have really seen, frankly, since the pediatric launch of G4 Platinum, and then particularly this year with G4 Platinum with Share. When we launched the Mobile Share platform with G4, what we really saw was a shift from a push from the endocrinologist down to the patient to we really started to see this thing go what I would characterize as more viral where patients, parents of patients, friends of patients have become by far our biggest advocates. I would tell you in the quarter that's probably, the impact there was our biggest driver because, as you mentioned, we only really barely started shipping Gen 5 in the quarter.

Robbie，先回答第一部分。坦白說，自從 G4 Platinum 兒科上市以來，尤其是今年推出具 Share 功能的 G4 Platinum 之後，我們真正看到的是：原本是由內分泌科醫師向下推動到病患的「推力」，轉變為我會形容更像病毒式擴散的模式；病患、病患的家長、病患的朋友，迄今已成為我們最重要的倡議者。我會說在本季，這個影響大概是我們最大的驅動因素，因為如你所提到的，我們在本季其實才剛開始少量出貨第 5 代。

I think the Nick Jonas campaign, it's hard to measure. But I think that had some impact as well. Then I guess the product's performing. And I think what we're seeing is just CGM is becoming much more rapidly more the, I'd hate to call it the standard of care yet but, we're not that penetrated into Type I's yet. But it's quickly becoming the standard of care. I think when we look at getting big as quickly as we can, we talked about some of the spend we're going to do. I mean, Kevin mentioned some of the spend in Q3, which is literally spend just gearing up for the more aggressive DTC campaigns that we are anticipating here in Q4. As for pediatric utilization of the new algorithm with Gen 5, I'm not sure we see any impact there.

我認為 Nick Jonas 的活動很難衡量，但我想也有一些影響。再來我想產品本身表現良好。我們看到的是 CGM 正更快速地成為——我不太想稱之為照護標準，因為我們在第一型糖尿病的滲透率還沒那麼高——但它正迅速成為照護標準。我想當我們談到要盡快做大規模時，我們也談到將進行的一些支出。Kevin 提到第三季的一些支出，其實就是為了在第四季預期更積極的 DTC 活動做準備。至於兒科在第 5 代使用新演算法的情況，我不確定我們目前看到有任何影響。

We do know that the physicians are happy that it is available.

我們確實知道，醫師們很高興它已經可以使用。

Yes. The other -- it hasn't been a material impact yet, but we did, as of the beginning of the quarter, start shipping much more of our business through the pharmacy channel with United and Anthem going live at the beginning of Q3. That's starting to have an impact as well.

是的。至於另外一點——目前還沒有造成重大影響，但我們在本季一開始，隨著 United 和 Anthem 於第三季初正式上線，我們開始把更多業務透過藥局通路出貨。這也開始產生影響。

All right. And then it's been several months since the Google partnership was signed. Have you guys come up with how much incremental R&D spend we might see per quarter going forward from it? Thanks a lot.

好的。然後，Google 的合作夥伴關係簽署至今已經過了好幾個月。你們是否已經估算出，未來每季可能會因此增加多少研發（R&D）支出？非常感謝。

Robbie, this is Kevin. We don't really have an incremental number to give you for Q4. We will give you very firm guidance on that the first of the year. We're just getting to know everybody, to be honest with you. So while our projects are taking place and our project teams are getting together, there's still a lot of -- we did sign this in the third quarter that we just reported on. It has not been that many months. We're really starting to get going now.

Robbie，我是 Kevin。我們目前沒有可以提供給你第四季的增量數字。我們會在明年年初給你非常明確的指引。老實說，我們才剛開始彼此熟悉。所以雖然我們的專案正在進行、專案團隊也在組建中，但仍有很多——我們是在剛剛報告的第三季簽下這個合作的，並沒有過那麼多個月。我們現在才真正開始加速推進。

Bill Plovanic, Canaccord.

Bill Plovanic，Canaccord。

This is Kyle on for Bill. Congrats on a great quarter. Just wondered if we could start off on the PBM side. Third quarter's the first quarter with the move with Anthem and UNH. Could you talk to us about where are you in that transition over? What's the percentage of patients now that are currently through that channel, and where do you see that going in the near-term, next 12, 18 months?

我是 Kyle，代替 Bill。恭喜你們有個很棒的季度。我想先從 PBM 端開始問。第三季是與 Anthem 和 UNH 轉換後的第一個季度。你們能否談談目前轉換進度到哪裡了？現在透過該通路的病患比例是多少？以及你們預期在短期內、未來 12 到 18 個月會如何發展？

I pretty much said what we are going to say. We've hit our internal goal of covered lives, and we have seen an increase in the number of patients that have gone over. But we are not going to give a whole lot more color than that today. Our goal is over, really, a three-year period to move 70% of our business as pharmacy benefit as the primary reimbursement source. And we're getting there. That's about it.

我基本上已經把我們今天會說的都說了。我們已達成內部對於涵蓋人數（covered lives）的目標，也看到轉過去的病患數增加。但今天我們不會再提供太多細節。我們的目標是在大約三年的期間內，讓 70% 的業務以藥局給付（pharmacy benefit）作為主要的報銷來源。我們正在朝那個方向前進。大概就這些。

Okay, great. And then I know it's still early, obviously, with the G5 launch. But you highlighted looking to put a new receiver in the market in the second half next year. Just wondered, with the new system moving to the phone, how should we be modeling a new receiver launch and thinking about utilization from patients and adaption from that standpoint? And that's it. Thank you.

好的，很棒。然後我知道 G5 上市還很早。不過你們提到明年下半年希望推出新的接收器（receiver）。我想問的是，隨著新系統轉向手機端，我們應該如何建模新的接收器上市，以及從病患使用量與採用（adoption）的角度來看應該怎麼思考？就這些，謝謝。

The new receiver launch is strictly a function of coming up with something that is more modern than what we have, a touchscreen, a better experience for patients. It will be lower cost. The revenues are not going to change, we don't view drastically with respect to the receiver. There are some patients, as we've learned, that would rather look at the data on their receiver than on the phone. So this will provide a much better experience for those guys and for that patient group. But it's not going to change much of anything.

推出新的接收器純粹是因為我們要做出比現有產品更現代的東西：觸控螢幕、對病患更好的使用體驗。成本也會更低。我們不認為接收器在營收上會有大幅變化。有些病患——我們也學到——寧可在接收器上看資料，而不是在手機上看。因此這會為那些人以及那個病患族群提供更好的體驗。但它不會改變太多事情。

James Franciscone, Morgan Stanley.

James Franciscone，Morgan Stanley。

Thank you for taking the question. Wanted to follow up on the manufacturing and inventory constraints that you alluded to in your prepared comments. What drives your confidence that that will not have an impact on the fourth quarter from a new patient start or revenue perspective?

謝謝讓我提問。我想追問你們在事先準備的發言中提到的製造與庫存限制。是什麼讓你們有信心，這不會在第四季對新病患啟用或營收面造成影響？

We meet on this every day. And so I could give you very detailed specifics. We're catching up on the manufacturing side. This was, to a large extent, a component issue in getting components in place to our contract manufacturer who's done a [yeoman's] job building with what we have. The material is coming in. We are building at full capacity right now. We are pretty comfortable with our capacity and what we have.

我們每天都在針對這件事開會。所以我可以給你非常詳細的細節。我們在製造端正在追趕進度。這在很大程度上是零組件問題——要把零組件到位並交給我們的委外代工廠；他們在現有條件下已經做得非常出色。材料正在進來。我們現在正以滿載產能生產。我們對產能與現有資源相當有信心。

The only way we would have a problem by the end of the quarter, barring something unforeseen today, would be if it was just a true mega-quarter beyond anything we could comprehend in our room here. So we feel pretty good about it. We've got very good visibility into the capacity of our contract manufacturer. We have very strong visibility into the component schedules as they come in to get this done. This is not a big yield problem. This is not anything other than we launched the thing earlier than we planned. We took a month that we were supposed to be building up inventory in and we shipped all of the stuff. And so we put ourselves a little bit ahead of schedule. But we'll catch up. We're very comfortable with it.

除非今天之後出現某些無法預見的狀況，否則到本季末唯一可能出問題的情況，就是第四季成為一個真正的超級大旺季，旺到超出我們在這個會議室裡所能想像的程度。所以我們感覺相當不錯。我們對委外代工廠的產能有非常高的能見度；對零組件到貨排程也有非常清楚的掌握，能確保把事情做完。這不是良率（yield）的大問題。除了我們比原先計畫更早上市之外，沒有其他因素。我們原本有一個月是要用來建立庫存的，但我們把所有東西都出貨了，所以讓自己進度稍微超前（也就是庫存較少）。但我們會追上來。我們對此非常有信心。

Okay. And I just on operating expenses, you walked through a fairly long list of investment priorities. Would it make sense if there were just one or two, or maybe three of those, to call out that are going to be chunky pieces of incremental spend into 2016? Just trying to get a sense of the relative importance of those items.

了解。再問一下營業費用（operating expenses），你們列出了一長串投資優先事項。是否可以點出其中一到兩項、或兩三項，會在 2016 年成為較大塊（chunky）的增量支出？我想了解這些項目的相對重要性。

Let me, in case it wasn't clear in the prepared remarks, let me tell you the message that we were trying to convey was this. That we've always continued to invest and continue to spend on the core technology development. What we're talking about in 2016 that could be -- Google could be chunky, for example. We are looking strategically to make some additional investments in our foreign operations. Our manufacturing capacity. We've got extraordinary manufacturing capacity that you guys are all aware of here in San Diego. Guess what? We look out two and three years from now, and the way demand is growing we could be butting up into some of that capacity.

我再補充一下，以免在事先準備的發言中不夠清楚：我們想傳達的訊息是，我們一直都持續投資、持續在核心技術開發上支出。我們談到 2016 年可能會——例如 Google 可能會是一個較大塊的支出。我們也在策略性地考慮對海外營運做一些額外投資。還有我們的製造產能。你們都知道我們在聖地牙哥有非常可觀的製造產能。你猜怎麼著？我們往後看兩到三年，以需求成長的速度，我們可能會逐漸逼近部分產能上限。

So Class 3 regulated manufacturing facilities don't come online overnight. Guess what? You have to start investing in them now in anticipation of turning those things live in two years, three years. So those are the kinds of things that'll be chunky. As Kevin mentioned, look, we are going to do our best to give you some much better -- we haven't historically given really detailed OpEx guidance. And I think we're going to try to do that on a much more granular level for next year, for 2016.

因此，第三類（Class 3）受監管的製造設施不可能一夕之間就上線。你猜怎麼著？你必須現在就開始投資，才能預期在兩年、三年後把那些設施啟用。所以這類事情會是比較大塊的支出。正如 Kevin 提到的，我們會盡最大努力提供你們更好的資訊——我們過去並沒有提供非常細的營業費用（OpEx）指引。我想我們會嘗試在明年、也就是 2016 年，以更細緻的層級提供指引。

Yes, it's time.

是的，該是時候了。

Okay.

好的。

Brooks West, Piper Jaffray.

Brooks West，Piper Jaffray。

Hi, guys. Thanks for taking the questions. Kevin, you talked a little bit about the pricing dynamics in the shift to the pharmacy, and that is a common question from investors. Can you give us a little bit more on the mechanics of how that changes and how you might be actually realizing a higher price as you shift into that channel?

嗨，各位。謝謝讓我提問。Kevin，你稍微談到轉向藥局通路時的定價動態，這也是投資人常問的問題。你能否再多說一點其運作機制：這樣的轉變如何發生，以及當你們轉到該通路時，可能如何實際實現較高的價格？

I can just give you the simple example. We have seen contract pricing between payers and our independent third-party distributors to the tune of, I don't know, $90 a sensor when we set our ASP at $70 to $75. When you look at a contract like that, and we look at that and go to a payer and say, look from an cost perspective we can get you this as a pharmacy benefit at a price much lower than $90, and I'm just using $90 as my test case here. It is pretty easy to show how that is better for the payer on our side. We're selling the stuff to the third-party distributor at a discount. When all said and done, net to DexCom in some cases can be better. In some cases it will be lower, we know that. But we believe at the end we're trying to keep this as even as we possibly can. And we evaluate all of the pricing opportunities very carefully.

我可以用一個簡單例子說明。我們看到付款方（payer）與我們獨立的第三方經銷商之間的合約定價，大概是每個感測器 90 美元左右，而我們設定的平均銷售價格（ASP）是 70 到 75 美元。當你看到這樣的合約，我們就會去找付款方說：從成本角度來看，我們可以用藥局給付（pharmacy benefit）的方式，提供你們遠低於 90 美元的價格——我這裡只是用 90 美元作為測試案例。這樣很容易就能說明，對付款方而言這在我們這邊更有利。我們把產品以折扣價賣給第三方經銷商。全部結算後，DexCom 的淨額（net）在某些情況下可能更好；在某些情況下也會更低，我們知道。但我們相信，最終我們會盡可能讓它保持大致持平。我們也會非常謹慎地評估所有定價機會。

Should we be thinking about the potential for some price benefit in addition to the underlying unit volume that you are generating as we think about the next couple years?

在思考未來幾年時，除了你們帶來的基本單位出貨量成長之外，我們是否也應該把一些潛在的價格利多納入考量？

Our goal is to remain even on the price perspective as we push out the distribution channel to the pharmacy benefit, and that is how we look at the contracts. If we can remain status quo, we're fine. Where the price benefit may change in future years and in future models is with an extended wear sensor like we're planning for G6 when we go to 10 days. But that has yet to be determined.

我們的目標是在把通路推向藥局給付時，從價格角度維持持平，這也是我們看待合約的方式。如果能維持現狀，我們就可以。未來年度、未來模型中，價格利多可能改變的地方，會是在我們規劃給 G6 的延長配戴感測器（extended wear sensor）——當我們把配戴天數拉長到 10 天時。但這仍有待確定。

I guess the only other comment I would make, Brooks, is looking out -- let's look out 5 years, 10 years. We expect pricing to come down.

我想我唯一還會補充的另一點，Brooks，是往前看——讓我們看 5 年、10 年後。我們預期定價會下降。

Yes, it has to.

是的，必須如此。

We expect to maintain gross margin in a similar scenario. But one of the key driving factors behind the Google deal was to develop products that are much, much lower cost for us to enable pricing to come down to make the technology more accessible to people. I don't see that happening in the next two to three years, but --

我們預期在類似情境下維持毛利率。但促成與 Google 交易的其中一個關鍵驅動因素，是開發對我們而言成本低得多、低得多的產品，讓定價得以下降，使這項技術更容易被大眾取得。我不認為這會在接下來兩到三年內發生，但——

Over time.

隨著時間推移。

Absolutely expected it over time.

絕對預期會隨著時間推移而發生。

Okay. And then just one more on cost, if I could. There's been a lot of questions on gross margin and operating expense. Maybe at a high level, Kevin, as you think about -- it looks like you have a lot of leverage available in the model. As we look out the next year or two, should we think about the increased spending that you are talking about as maybe taking away some of that leverage? Are you actually going to spend beyond, so we should be thinking about maybe some losses coming in at the bottom? How should we be thinking about matching the incremental expense with the revenue growth that you're generating? Thanks.

好的。然後如果可以的話，再問一個關於成本的問題。關於毛利率與營業費用有很多問題。Kevin，也許從較高層次來看，當你思考——看起來你們的模型有很大的槓桿空間。展望未來一到兩年，我們是否應該把你所談到的增加支出視為可能會削弱部分槓桿？你們是否真的會支出超過（原本的水準），因此我們應該考慮最終損益可能出現一些虧損？我們應該如何看待新增費用與你們所帶來的營收成長之間的匹配？謝謝。

Brooks, that's a great question. As we are in the middle of our planning cycle for 2016, that is our great debate here internally. Steve identified a couple chunky areas as far as investing in additional manufacturing capacity. Our Google relationship, which we're going to spend money on also, data analytics. What we're going to do as we start next year is really break out those areas that are going to be above and beyond the spend in the core business.

Brooks，這是個很好的問題。當我們正處於 2016 年的規劃週期中，這正是我們內部最大的辯論。Steve 指出了幾個較大的投資領域，例如投資額外的製造產能。我們與 Google 的合作關係，我們也會在上面花錢，還有資料分析。我們明年開始要做的，是把那些超出核心業務支出範圍的領域真正拆分出來。

There is a lot of leverage in the model. There's no question that our business model works. Even as I said through my comments, when you look at the 155% increase in cash-based net income over nine months. Our only goal here is not leverage. We want to get big and we want to serve more patients. So we're going to have to make some investments.

這個模型確實有很大的槓桿空間。毫無疑問，我們的商業模式是可行的。即便如我在評論中所說，當你看九個月現金基礎淨利增加 155%。我們在這裡唯一的目標不是槓桿。我們想做大，想服務更多病患。因此我們必須進行一些投資。

As you look at the people who are coming through our markets, A, they are really big. B, they don't have to report this level of granularity as far as their spend into what they are doing and their activities. We'll give you more guidance. It could be a combination of both. I think in the core business, there definitely is going to be more leverage. And that is going to be -- you will continue to see that be more and more profitable. There is no question there.

當你看那些進入我們市場的人，A，他們規模真的很大。B，就他們的支出與活動而言，他們不必揭露到這種細緻程度。我們會提供更多指引。可能兩者兼具。我認為在核心業務方面，槓桿肯定會更大。而且那將會——你會持續看到它變得越來越獲利。這點毫無疑問。

As we continue to do some of these other things as we outlined, we're going to have to spend some money that's outside and above the norm. That's okay, because that's preparing us for the future.

當我們持續推進我們所概述的其他事項時，我們將不得不花一些超出常態、超出一般水準的錢。這沒問題，因為那是在為未來做準備。

Jayson Bedford, Raymond James.

Jayson Bedford，Raymond James。

Hi, guys. This is Mike calling in for Jayson. Thanks for taking the questions. Not to beat a dead horse, but circling back to the investment comments. From a sales and marketing perspective, is it still fair to assume you're going to add maybe 20 or so reps in 2016? Could it be a more significant expansion? Do think at this point you're getting more bang for your buck on DTC or more of an R&D focus?

嗨，各位。我是 Mike，代替 Jayson 來電。謝謝讓我提問。不是要老調重彈，但我想回到投資的評論。從銷售與行銷的角度來看，是否仍可合理假設你們在 2016 年會新增大約 20 位左右的業務代表？會不會擴張得更顯著？就目前而言，你們覺得在 DTC 上的投資報酬更高，還是更偏向研發（R&D）的重點？

On the commercial side, they are going through their plans right now. I can tell you that our more recent investments have been made on the channel side with respect to the distribution channel, with respect to payers, with respect to actually to programs to go out pharmacies to prepare pharmacists to market and to sell this product. So we know there's going to be an investment there for next year. I have not looked at next year's proposed territories yet. I can tell you, we are getting tremendous bang for the buck out of our team. They're doing a fabulous job.

在商業端，他們現在正在做規劃。我可以告訴你，我們近期的投資更多是放在通路端：就經銷通路而言、就支付方而言，以及實際上推動一些計畫，走進藥局，讓藥師做好準備來行銷並銷售這項產品。因此我們知道明年那裡會有投資。我還沒看過明年提案的區域劃分。但我可以告訴你，我們的團隊帶來了非常高的投資報酬。他們做得非常出色。

You look at this revenue growth, and even though we added quite a few reps at the beginning of the year, these guys couldn't possibly be achieving these types of numbers without us getting a lot of bang for our buck. We are investing in a lot of new tools with respect to IT infrastructure and with respect to things we can do to make that process go faster with our online store. We know we can make improvements there, and we have, and things of that nature.

你看看這個營收成長，即便我們在年初新增了不少業務代表，如果我們沒有獲得很高的投資報酬，這些人不可能達成這樣的數字。我們正在投資許多新工具，包括 IT 基礎設施，以及我們能做的事情，讓線上商店的流程更快。我們知道那裡可以改善，而且我們也已經做了改善，諸如此類。

The R&D spend for us is almost completely independent of the commercial spend. We're spending most -- and there's really a couple of spends on the R&D side. There's actually three or four. There's really, really near-term products that are going to come, as we talk about the applicator and the new receiver, for example. By the way, the applicator also has a new transmitter that's smaller and lower cost. You see there's a new hardware configuration, and that's a very short-term 2016 event.

對我們而言，研發支出幾乎完全獨立於商業支出。我們的支出主要——而研發端其實有幾個支出項目，實際上有三到四個。首先是非常、非常短期就會推出的產品，例如我們提到的施用器（applicator）與新的接收器（receiver）。順帶一提，施用器也搭配一個新的發射器（transmitter），更小、成本更低。你可以看到有新的硬體配置，而那是非常短期、在 2016 年就會發生的事情。

Then you get into more nearer-term things like a G6 sensor and things of that nature combined with a bunch of clinical trials to run those projects. And then we've got longer-term sensor R&D investments whereby we to get into really small, no calibration. And the money we have to spend on Google. We will spend money in a very controlled, structured spend to drive the commercial business.

接著是更接近近期的事情，例如 G6 感測器，以及諸如此類，再加上一系列臨床試驗來推進這些專案。然後我們還有更長期的感測器研發投資，目標是做到非常小、免校正。以及我們必須在 Google 上投入的資金。我們會以非常受控、結構化的方式支出，以推動商業業務。

Steve mentioned investing in our international business. You'll hear more about that at the first of the year as well. We're studying it all pretty thoughtfully, but it is across the board to keep us growing.

Steve 提到投資我們的國際業務。你們在明年年初也會聽到更多相關內容。我們正在非常審慎地研究，但這是全方位的投入，以維持我們的成長。

Okay. Got it. I'm sorry if I missed this, but looking at the shifting hardware model of G5, can you give us an idea on where ASPs are heading for G5 transmitters?

好的，了解。抱歉如果我漏聽了，但就 G5 硬體模式的轉變來看，你們能否讓我們了解一下 G5 發射器的 ASP 走勢？

I'm not going to give you a specific ASP, but we've talked about this previously, which is the fact that the transmitter now carries a three-month warranty. And unlike the G4 transmitters which carried a six-month warranty but were really lasting 9, 10, 11 months, something like that. This transmitter, because of the increase power requirements of Bluetooth, really is not going to last much longer than three months.

我不會給你一個具體的 ASP，但我們之前談過：發射器現在提供三個月保固。不同於 G4 發射器提供六個月保固，但實際上可用 9、10、11 個月左右。這個發射器因為藍牙（Bluetooth）提高了耗電需求，實際上不太可能比三個月更久。

Patients are going to have to go from somewhere two, or maybe less than two transmitters per year to really close to four transmitters per year. We're not anticipating that the payers are going to pay us -- the old ASP was probably $400, $450 for a transmitter. We're not expecting that we're going to receive that four times a year. The pricing is going to come down.

病患每年將必須從大約兩個、或甚至少於兩個發射器，變成接近每年四個發射器。我們不預期支付方會以——過去的 ASP 可能約為每個發射器 400 到 450 美元。我們不預期一年會收到四次那樣的價格。定價會下降。

Now, that will be somewhat offset as we really ramp up the G5 launch by increased volumes. So the margins will end up being better over time because of the increased volume. That is about as specific as I think were going to get. You should expect, just on that transmitter component, that margins will come down a little bit.

不過，當我們真正加速 G5 上市時，這會在某種程度上被更高的出貨量所抵銷。因此隨著時間推移，因為量增加，毛利率最終會變得更好。我想這已經是我們能給出的最具體程度。你應該預期，僅就發射器這個元件而言，毛利率會下降一點。

Tao Levy, Wedbush Securities.

Tao Levy，Wedbush Securities。

Hi. Good afternoon. Maybe I could start with a comment from you guys around utilization. I don't know if I missed that. Is there a difference that you see in this quarter versus prior on sensors?

嗨，下午好。也許我可以先從你們對使用率（utilization）的評論開始。我不確定我是否漏聽了。你們在本季相較於之前，是否看到感測器使用上有任何差異？

This is Kevin. No, I don't -- I think it continues to remain very strong. Everywhere I go, I hear people get on this and stay. Fortunately, as we migrate to G5, as these patients have their data go to the cloud, there will come a day when I ultimately have my Big Brother dream and I can have a TV in my office that shows me how many patients are on the system each and every day, and get a much better idea of that from our cloud-based systems.

我是 Kevin。沒有，我不——我認為它仍然非常強勁。我到哪裡都聽到人們開始使用後就持續使用。幸運的是，當我們轉移到 G5，當這些病患的資料上傳到雲端後，總有一天我終於能實現我的「老大哥」夢想：在辦公室放一台電視，顯示每天有多少病患在使用系統，並從我們的雲端系統得到更好的掌握。

We are going to be able to determine how often they change, what patterns really are. Anecdotally we hear all sorts of things out there. We heard one patient say the data wasn't very good. And when we asked her how long she had worn the sensor, she was on week six. Well, for a seven-day labeled product, week six is pretty good. We're going to learn a lot more and have a lot more understanding of those patterns. No, utilization is good.

我們將能夠判斷他們更換的頻率、真正的模式是什麼。我們從市場上聽到各式各樣的軼事。有位病患說資料不太好，而當我們問她戴了多久的感測器時，她已經用到第六週了。嗯，對於一個標示為七天使用的產品來說，第六週算是相當不錯了。我們會學到更多，並對這些模式有更深入的理解。不，使用率很好。

Okay. My understanding is the way the transmitters for the Q5 are shipped, you're shipping them two at a time. Patients are still ordering just twice a year, getting scripts twice a year. Is that how it works? Is that how the insurance companies understand it? I guess what I'm getting at, is there a risk that the insurance companies lag in how quickly they update their systems? So all of the sudden the patient's asking for four refills on their transmitters instead of just two and the insurance systems just are not up-to-date with what you guys are doing?

好的。我的理解是，Q5 的發射器出貨方式是一次出貨兩個。病患仍然是一年只下單兩次、一年拿到兩次處方。是這樣運作嗎？保險公司也是這樣理解的嗎？我想問的是，保險公司在更新系統的速度上會不會落後？所以突然之間，病患在申請發射器補充時變成要四次補充而不是兩次，而保險系統卻沒有即時更新你們目前的做法，會不會有這種風險？

We are both chuckling because insurance systems are never really up-to-date and we're always experiencing challenges. No, the fact that we are sending two means that the patient's probably not going to have to come back for another six-plus months. And with G4 Platinum, the transition there was relatively seamless, moving from -- remember, with seven-plus, it was a 12-month transmitter that lasted somewhere between 12 months to 18 months. G4 Platinum, we were definitely selling more transmitters and we were not having challenges at the insurance level.

我們兩個都在笑，因為保險系統從來都不會真的即時更新，我們也一直遇到挑戰。不會的，我們一次寄兩個，代表病患大概在接下來六個多月都不需要再回來補貨。而且在 G4 Platinum 的轉換上相對順暢——回想一下，7-plus 是一個 12 個月的發射器，實際壽命大概介於 12 到 18 個月。到了 G4 Platinum，我們確實賣出更多發射器，但在保險端並沒有遇到問題。

(Multiple speakers) just in case.

（多位發言者）以防萬一。

Okay. Thanks.

好的。謝謝。

Doug Schenkel, Cowen Company.

Doug Schenkel，Cowen Company。

This is Ryan Blicker on for Doug. Thanks for taking my questions. Let me just start with new revenue guidance. You said you now expect revenue to exceed the top end of your previous range. At the top end, do you think that could be exceeded with flat sequential revenue from Q4? You've targeted a long-term growth rate of 40%. But all of your commentary today, as well as your results, suggest your business is actually accelerating. Is there any reason you believe growth will decelerate below that 40% in Q4?

我是代替 Doug 的 Ryan Blicker。謝謝讓我提問。我先從新的營收指引開始。你們說現在預期營收會超過先前區間的上緣。在上緣的情境下，你們認為即使 Q4 營收與 Q3 持平（季對季持平），也可能超過嗎？你們長期目標成長率是 40%。但你們今天的所有評論以及業績表現，都顯示業務其實正在加速。你們是否有任何理由認為 Q4 的成長會降到 40% 以下？

No, we are sticking with our guidance, what we said. We updated our guidance last quarter to the top end of [$375 million], which was north of our original stated guidance of 35% to 40%. We're not going to give any additional color as to where we think Q4. We didn't say that we expect a sequential decline. We didn't say that expect sequential flat. We said that we are comfortable that we're going to exceed the top end of our $375 million. And we're going to leave it at that.

沒有，我們會維持我們所說的指引。我們在上一季把指引更新到 [3.75 億美元] 的上緣，這高於我們最初所說的 35% 到 40%。我們不會再提供更多關於我們認為 Q4 會如何的細節。我們沒有說我們預期會季對季下滑；也沒有說預期季對季持平。我們說的是，我們有信心會超過 3.75 億美元的上緣。我們就先說到這裡。

Okay. That's fair. Moving to the transmitters. Can you give us a sense of how patients are responding to the shorter transmitter useful life with G5? And maybe provide more color on the new transmitter you just talked about that will launch along with the sensor applicator in the second half of next year? You said smaller and lower cost. Should we also be looking for another shortened useful life?

好的。這樣很合理。接著談發射器。你們能否說明一下，病患對於 G5 發射器使用壽命縮短的反應如何？另外也請多談一些你們剛提到、將在明年下半年與感測器施用器（sensor applicator）一同推出的新發射器。你們說會更小、成本更低。我們是否也應該預期使用壽命會再縮短？

No, the useful life will remain the same. And they really haven't had time to respond to the three-month life because we've only been shipping for 1.5 months. So we haven't heard anything on that front yet.

不會，使用壽命會維持不變。而且他們其實也還沒有時間對三個月的壽命做出反應，因為我們才出貨 1.5 個月。所以目前在這方面我們還沒有聽到什麼回饋。

There's advantages and disadvantages to a three-month transmitter life. Obviously, the disadvantage is you do have to buy more of them. And as Steve mentioned earlier, hardware margins should come down a bit because of that. The advantage is when we get something new, that upgrade cycle is going to be really short because no matter when you bought your last transmitter, within 90 days you can move to the new one. The upgrade programs we have gone to great effort to offer our patients, and we'll continue to do so, if necessary. The fact is, we're not going to have to do that much of that because everybody is going to be ready to go in 90 days. There's pluses and minuses of both.

三個月發射器壽命有優點也有缺點。很明顯，缺點是你確實得買更多個。正如 Steve 先前提到的，因為這個原因，硬體毛利率應該會稍微下降。優點是當我們推出新產品時，升級週期會非常短，因為不管你上一次買發射器是什麼時候，90 天內你就能換到新的。我們為病患提供升級方案投入了很大努力，必要時也會持續這麼做。事實上，我們不需要做太多這類方案，因為每個人在 90 天內就都會準備好升級。兩者各有利弊。

Danielle Antalffy, Leerink Partners.

Danielle Antalffy，Leerink Partners。

Good afternoon, guys. Thanks so much for taking the question. Kevin, in the past you've talked about 40% sustainable growth going forward. Obviously you been growing much better than that this year and last year. I'm just wondering how we should be thinking about that longer time. You guys have a lot of tailwinds, both near and medium term. Can you update us on what you're thinking about that longer-term growth target?

各位下午好。非常感謝讓我提問。Kevin，你過去談到未來可持續的 40% 成長。很明顯你們今年和去年成長都遠高於此。我想了解我們應該如何看待更長期的情況。你們在短期與中期都有很多順風因素。你能更新一下你們對於長期成長目標的想法嗎？

Danielle, we continue to plan for the sustainable 40% number. Having lived through these several quarters of 50%-plus growth, it's been great. Just by the law of increasing numbers, as you can see even in Q3 this year compared to Q3 last year, with a blow-out quarter it's down from what used to be 60% into the 50%s. As our numbers increase, just because of percentages, some of those percents have to come down.

Danielle，我們仍然以可持續的 40% 這個數字來做規劃。經歷了這幾季 50% 以上的成長，確實很棒。但依照「基期變大」的法則，你可以看到即使是今年 Q3 對比去年 Q3，雖然是爆發性的一季，成長率也從過去的 60% 降到 50% 多。隨著我們的規模變大，單純因為百分比的關係，有些百分比必然會下降。

There's still a whole bunch of market to go penetrating, go get in our Type I market. We still don't have the penetration that we need. There's a large international market for us to go capture. And we think, as we've scheduled the pipeline and you've see this growth, as Steve said, largely executed by great new technology and a commercial team that's executed on all cylinders combined with approvals and all those other things. Those things are still in place for us.

我們在第一型糖尿病（Type I）市場仍有很大一塊可以繼續滲透、繼續拿下。我們的滲透率仍未達到應有水準。國際市場也很大，仍有很多可供我們去取得。我們認為，隨著我們排定的產品管線以及你們看到的成長，如 Steve 所說，主要是由優秀的新技術與全力以赴執行的商業團隊所帶動，再加上核准與其他因素。這些條件對我們而言仍然存在。

We've grown 40% on a number this year of -- last year, growing 40% on last year's number is certainly much tougher than growing 40% on a number from the year before. The law of big numbers eventually gets to you a little bit. We're very optimistic about our business future and we're not slowing down at all. We'll give you a lot more color early in 2016 when we provide our 2016 guidance.

我們今年是在一個更大的基礎上成長 40%——去年要在去年的基礎上再成長 40%，當然比在更早一年的基礎上成長 40% 要難得多。「大數法則」終究會對你產生一些影響。我們對業務未來非常樂觀，完全沒有放慢。我們會在 2016 年初提供 2016 年指引時，給你們更多細節。

Okay, awesome. That's great. And then just following up on that, maybe a higher level question. As you think about the total addressable market here, what in your mind is a realistic penetration rate ultimately for Type I patients, assuming you're successful in continuing to evolve the technology? No reason to assume you won't be because you guys have been so successful thus far. Ultimate penetration in Type I's. And then how big do you think this can get in Type IIs? I'm asking a very high level, 5 to 10 years from now. Obviously not asking you to provide guidance for the next two years.

好的，太棒了。那再追問一個比較高層次的問題。當你們思考整體可服務市場（TAM）時，在你看來，假設你們持續成功推進技術演進，第一型病患最終合理的滲透率會是多少？沒有理由認為你們不會成功，因為你們到目前為止非常成功。第一型最終滲透率。然後在第二型（Type II）方面，你覺得規模可以做到多大？我問的是非常高層次、5 到 10 年後的情境。當然不是要你們提供未來兩年的指引。

I will let Steve take his guess first and then I'll give mine.

我先讓 Steve 先猜一下，然後我再說我的看法。

Yes, interesting. In Type I, I would tell you in Type I in the US, if we are successful with the product iterations that we have, and I would tell you not even relying on the Google product, just some of the things that we have in the more near-term pipeline. There's no reason that as we replace finger sticks, and whether we ultimately, if the FDA ever allows to ultimately eliminate calibrations completely or whatever the safety check might look like down the road. There's no reason that every Type I in the US who has some type of insurance, and I include Medicare and Medicaid in that over the next several years, there's no reason that everybody wouldn't use CGM. Why would you prick your finger six, seven, eight times a day if you're a Type I? If you have to monitor, wear a sensor.

是的，很有意思。就第一型而言，我會告訴你，在美國的第一型，如果我們能成功推進我們既定的產品迭代——而且我甚至不需要依賴 Google 的產品，只看我們較近端管線中的一些項目——當我們取代指尖採血，而且如果未來 FDA 允許最終完全取消校正，或不管未來安全檢查會是什麼樣子——那麼沒有理由讓美國所有有某種保險的第一型病患（我也把 Medicare 和 Medicaid 包含在內）在未來幾年不使用 CGM。你如果是第一型，為什麼要每天扎手指六、七、八次？如果你必須監測，就戴感測器。

The Type II market is still very much evolving. You have to segment the Type II market. For the patients that we're frankly starting to include in our target markets today, which I would call intensive insulin using patients. These are Type IIs who look and feel a lot like a Type I because they've progressed in their disease to a point where they're taking mealtime injections of insulin. I think that the penetration there could be quite extensive.

第二型市場仍在快速演變中。你必須對第二型市場做分眾。就我們坦白說今天開始納入目標市場的病患，也就是我所稱的「密集使用胰島素」的病患——這些第二型在疾病進展到某個程度後，需要在用餐時注射胰島素——他們看起來、感覺上很像第一型。我認為那一塊的滲透率可能會相當高。

We look to the broader Type II market, or the pre diabetes market, the obesity market, It's still somewhat to be determined. I think we can have meaningful impacts there. I don't necessarily think that these are going to be patients wearing sensors in real-time all the time like our Type I's or intensively managed Type I's. There's no reason that the standard of care truly becomes monitoring that these people are not going to be wearing multiple sensors a year. The numbers just become staggering, having millions and millions of people wearing four sensors or six sensors a year.

至於更廣泛的第二型市場、或糖尿病前期市場、肥胖市場，目前仍有待觀察。我認為我們可以在那裡產生有意義的影響。我不一定認為這些病患會像我們的第一型或密集管理的第一型那樣，隨時即時配戴感測器。但若照護標準真的演變成以監測為核心，就沒有理由這些人不會一年配戴多個感測器。數字會變得非常驚人——數以百萬計的人一年配戴四個或六個感測器。

And what we have to do, and we talk with the Google people about this on a regular basis. We've got to develop the clinical evidence that basically says you're better off as a Type II patient wearing four to eight sensors a year than you are sticking your finger twice a day. We believe that's very doable and very true.

而我們必須做的事情，而且我們也會定期就此與 Google 的團隊溝通，就是要建立臨床證據，基本上要能證明：對於第二型糖尿病患者而言，一年配戴四到八個感測器，比起每天扎手指兩次要更有利。我們相信這非常可行，而且也確實如此。

The other thing I'd add to Steve's comment, I support pretty much everything that he spoke there. I was with a physician up in LA who's a long-time old-school endocrinologist. And I asked him, I said, how many -- what percent of Type I patients [should] have this? He said, all of them. I said, why don't they? He said -- he threw the cost number out. So I challenged him. I said, what's the number? What do we have to charge per day for CGM to get this on every single patient? To which he did not have an answer, because he was a bit taken aback by my response.

我想在 Steve 的評論之外再補充一點，我幾乎支持他剛才所說的一切。我在洛杉磯和一位醫師在一起，他是資深、很傳統的內分泌科醫師。我問他，我說，有多少——第一型病患中有多少百分比[應該]使用這個？他說，全部。我說，那他們為什麼沒有？他說——他拋出了成本數字。所以我就挑戰他。我說，那個數字是多少？我們必須把 CGM 的每日費用訂到多少，才能讓每一位病患都用上？他當時沒有答案，因為他被我的回應有點嚇到。

So we talked through that and we talked through the cost per day. All these things are going to line up over time. And I think we are positioned to do that. If we make it easy enough for patients, I think the better answer is why wouldn't somebody use it versus why are they.

所以我們把這些問題談開了，也討論了每日成本。所有這些事情隨著時間都會逐步到位。我認為我們具備做到這件事的條件。如果我們能讓病患使用起來足夠容易，我想更好的問題應該是：為什麼有人不使用它，而不是為什麼他們要用。

Jeff Johnson, Robert Baird.

Jeff Johnson，Robert Baird。

Two quick clarifying questions here. Kevin, I think I heard you say, not giving an update on timing for a potential dosing claim. Last quarter I thought I remember you saying, expecting that claim by next year. Is there any change there that I'm missing, or is there a change there? Can you clarify that?

這裡有兩個快速釐清的問題。Kevin，我想我聽到你說，對於潛在的劑量（dosing）聲稱在時程上不提供更新。上季我記得你說過，預期明年會取得那項聲稱。這裡有任何我漏掉的變化嗎，或是確實有變化？你能釐清一下嗎？

I'm just being a little conservative, for all intents and purposes. We are getting close to defining exactly what we have to do here. Yes, I'm just being cautious. That's all.

我只是稍微保守一點，基本上就是這樣。我們已經接近要明確界定在這裡到底需要做什麼。是的，我只是謹慎一些。就這樣。

All right. That's fair. And then I thought you also said from a pipeline standpoint that seeing a new inserter next year and a new receiver, I think in Q&A somebody asked about a new transmitter coming next year as well. Is it the new receiver that's coming next year or is it a new transmitter as well?

好，這很合理。然後我也以為你提到，從產品線（pipeline）的角度來看，明年會看到新的插入器（inserter）和新的接收器（receiver）。我想在問答中有人也問到明年是否也會有新的發射器（transmitter）。所以是明年會推出新的接收器，還是也會有新的發射器？

With the new insertion system there will be a new transmitter that has a much lower profile and then a new receiver. So we'll have transmitter, receiver. It will be a big hardware year for us next year. Hardware and new apps and things of that nature will be our big product launches next year. Like I said, we'll give you more color on that first of the year when we provide our 2016 guidance.

隨著新的插入系統，我們會有一個外型更低矮的新發射器，然後也會有新的接收器。所以我們會同時有發射器、接收器。對我們來說，明年會是硬體的大年。硬體、新的 App 以及這類型的東西，將會是我們明年的主要產品發表。就像我說的，我們在年初提供 2016 年指引時，會給各位更多細節。

We have no further questions at this time. I would now like to turn the call over to Mr. Sayer for closing remarks.

目前沒有其他問題。我現在想把電話會議交給 Sayer 先生作結語。

Thank you very much. In conclusion, I want to thank all of you for your continued interest and support of DexCom. As we've stated throughout our comments all year and on this call, we are very proud of our accomplishments. We see an amazing future, and we will not rest until we achieve these goals.

非常感謝。總結來說，我要感謝各位持續對 DexCom 的關注與支持。正如我們今年在各項評論以及本次電話會議中一再提到的，我們對自身的成就感到非常自豪。我們看見一個令人驚嘆的未來，在達成這些目標之前，我們不會停下腳步。

This quarter we added an amazing partner in Google that's going to help us ultimately develop the products and analytical tools to achieve the outcomes that years ago we would have only dreamed of. We're executing the plans we've described all year. Our revenues are growing robustly. We continue to add record numbers of new patients. Our cash-based operating results are improving at a much faster pace. We are fully committed to making the investments necessary to get this Company to more than $1 billion of revenues in a very short period of time, much, much faster than I ever would have thought when I came here four years ago. As I said earlier also, I had an opportunity to spend quite a bit more time in the field over the past few weeks and visit with our great team and several healthcare professionals in their areas.

本季我們新增了一位很棒的合作夥伴——Google——它將協助我們最終開發產品與分析工具，以達成多年前我們只能夢想的成果。我們正在執行今年以來所描述的計畫。我們的營收強勁成長。我們持續新增創紀錄數量的新病患。我們以現金為基礎的營運成果正以更快的速度改善。我們完全致力於進行必要的投資，讓公司在非常短的時間內把營收提升到超過 10 億美元，速度遠遠、遠遠快於我四年前來到這裡時所能想像的。正如我先前也提到，過去幾週我也有機會花更多時間在第一線，拜訪我們優秀的團隊，以及他們所在地區的多位醫療專業人士。

I'm going to leave you with two other thoughts. First, when it comes to CGM we're clearly the market leader here. One physician said to me, when it comes to CGM I don't even think of anybody else. Another one said the effectiveness of an advance in diabetes technology is measured by one simple thing: reorders. Do the patients come back and do they use it? Yours is the CGM that my patients continue to use.

我想留給各位另外兩個想法。第一，談到 CGM，我們顯然是市場領導者。有位醫師對我說，談到 CGM，我甚至不會想到其他任何人。另一位則說，糖尿病科技進步的有效性可以用一件簡單的事來衡量：再訂購（reorders）。病患會不會回來、會不會持續使用？你們的 CGM 是我的病患會持續使用的那一款。

Second, I was visiting another office where the physician had very little experience with our system and very few patients using it. We challenged him to wear a G5 and see what our patients experience. He does not have diabetes, but he was pretty excited and really demanded that, I want to wear it right now. Fortunately we had a demonstration system, our rep did. And after a week our rep went back and informed me that he absolutely loves the visualization. He thinks phone interface is fantastic. He's amazed at the information he's learned about his diet, his activity and everything. He really has no intention of giving the demo system back, unless we do something to get it.

第二，我拜訪了另一間診所，那位醫師對我們的系統幾乎沒有經驗，使用的病患也很少。我們挑戰他配戴一個 G5，看看病患的實際體驗。他沒有糖尿病，但他非常興奮，還真的要求說：我現在就要戴。幸好我們有一套展示系統，我們的業務代表有。過了一週，我們的業務代表回去後告訴我，他非常喜歡那個視覺化呈現。他覺得手機介面非常棒。他對於自己從飲食、活動以及各方面所學到的資訊感到驚訝。他其實完全不打算把展示系統還回來，除非我們做點什麼把它拿回來。

Our long-term version of CGM across the board is very real. It's going to take time. It's going to take money. It's going to take patience and innovation from all of us, but we're going to get there. Thanks again.

我們的長期版 CGM 願景在各方面都非常真實。這需要時間。需要資金。需要我們所有人的耐心與創新，但我們一定會做到。再次感謝。

Thank you, ladies and gentlemen. This concludes today's conference. Think you for participating. You may now disconnect.

謝謝各位女士、先生。今天的會議到此結束。感謝各位參與。您現在可以掛線。