PHC shares gain 5.2%: to sell sales S ops of Eversense CGM systems

PHC shares gain 5.2%: to sell sales S ops of Eversense CGM systems

In a significant move for the diabetes care market, PHC Holdings Corporation (PHC) has seen a 5.2% increase in its stock price today, September 2, 2025. The rise is attributed to the company's decision to transfer the sales and operations of Eversense Continuous Glucose Monitoring (CGM) systems to its strategic partner, Senseonics Holdings, Inc. [1].

The Memorandum of Understanding (MOU) between PHC and Senseonics, signed on September 3, 2025, outlines a plan to transfer the commercial activities of Eversense from Ascensia Diabetes Care, a subsidiary of PHC, to Senseonics. This transition is set to begin on January 1, 2026, subject to the finalization of a definitive agreement [2].

The decision to consolidate Eversense's manufacturing, distribution, and commercialization within Senseonics is aimed at accelerating the growth of the Eversense brand and realizing its full potential. PHC and Senseonics believe that this vertical integration will enable Eversense to respond more quickly to market needs and enhance its competitive position.

The commercial operations transition will involve a smooth handover, with most of the Eversense commercial team from Ascensia, including Brian Hansen, President of CGM and former Chief Commercial Officer at Tandem Diabetes Care, joining Senseonics. Hansen will take on the role of Chief Commercial Officer at Senseonics [2].

PHC Group and Ascensia Diabetes Care have expressed their commitment to supporting Senseonics in establishing its commercial operations and ensuring a seamless transition. The companies anticipate minimal disruption to business partners, patients, and providers during this process [1].

The financial implications of this move are significant. Senseonics expects to see immediate revenue improvement and gross margin expansion to 50% in 2026, with a planned increase to more than 70% at scale. The investments in the commercial organization will be funded in part by improved margins and a $100 million non-dilutive debt facility with Hercules Capital, Inc. [2].

PHC Group's consolidated net sales in FY2024 were JPY 361.6 billion, with global distribution of products and services in more than 125 countries and regions. The company's long-term business strategy, known as the Value Creation Plan, includes updating the company structure and portfolio to pursue operational efficiency [1].

In summary, the 5.2% gain in PHC shares reflects investor confidence in the strategic partnership between PHC and Senseonics, and the potential for accelerated growth and increased efficiency in the Eversense CGM systems market.

References:
[1] https://www.morningstar.com/news/business-wire/20250903537999/ascensia-diabetes-care-signs-mou-to-transfer-eversense-cgm-distribution-to-strategic-partner-senseonics
[2] https://www.marketscreener.com/news/senseonics-signs-memorandum-of-understanding-with-ascensia-diabetes-care-to-take-over-commercializa-ce7d59dbdd8ef725