One reality of today's world is that calories are cheap. While hunger and starvation remain problems in parts of the world and country, more people die to health-related issues due to lifestyle.
Our bodies are built for a world, where calories were scarce, especially fats and sugar. Until a few decades ago, certain, unhealthy food items were treats enjoyed around the holidays or on birthdays. Today, they are abundant and available all the time.
One unfortunate consequence is the explosion in type 2 diabetes. Type 2 diabetes is a condition when the body stops managing insulin properly leading to swings in blood sugar. Some populations are more vulnerable to the disease than others, but it can have serious effects if it's not controlled including heart disease, stroke, high blood pressure, vision problem, and kidney issues.
Rapidly Growing
Currently, in the U.S., 30 million people have been diagnosed with type 2 diabetes, while another 10 million are considered to be at high risk of developing the disease. And by 2030, 55 million Americans are expected to be diagnosed with type 2 diabetes. It's one of the fastest-growing diseases in the work and for most people, it's due to choices around food and exercise.
What's interesting is that in many parts of the world that are making the transition from third-world to first-world, parts of the country struggle with starvation, while wealthier, urban areas are seeing high levels of type 2 diabetes. For example in India, 50 million people have been diagnosed with the disease. In urban areas, it's estimated that between 11 and 20% of people are diabetic.
Stocks
Diabetes is an unfortunate consequence of today's world, where food is abundant for most people. Within nations, it's concentrated among lower and middle-income groups, since they can afford food but may not have the time or energy to exercise. Additionally, processed foods are cheap and convenient but bring with them higher risks. The following two companies are singularly focused on addressing this disease. They've had incredible runs but have more opportunities for growth given the diseases' spread:
Livongo Health
Livongo Health is focused on treating type 2 diabetes. It has an app that collects information from patients related to their diet, blood pressure, glucose, and weight that's summarized into a report for patients and doctors. The stock has benefitted from the coronavirus and the increase in telehealth as it allows doctors to monitor their patients' health while minimizing visits. Its stock has more than quadrupled from the March lows.
Dexcom
Dexcom makes continuous glucose monitoring systems that allow patients and doctors to see and better assess blood glucose swings. It allows people to make better decisions and generally, tends to lead to better outcomes as patients become aware of the choices they make and its impact on their blood sugar. Its stock has also been a big winner as its product continues to gain traction given the growing population of people diagnosed with the disease all around the world. Dexcom is up 3,100% over the last decade and 99% year to date.
