Dexcom previously projected Stelo will be worth about $40m in revenue this year and reach a $100m "run rate" by the end of the year.

"We think Dexcom can potentially exceed this target due to the broader over-the-counter access," BTIG analyst Marie Thibault wrote in a 6 March note.

"This is an underappreciated opportunity given how large the non-insulin using type 2 patient pool is relative to the type 1 diabetes and type 2 diabetes insulin-using population."

Initially, users will have to pay for Stelo out-of-pocket, but analysts expect the company will eventually secure third-party reimbursement for CGM in type 2 diabetics not using insulin.

"Eliminating barriers to access should allow for broader uptake of the technology," Wolfe Research analyst Mike Polark wrote in a 5 March note. "This supports our view that CGM continues to work its way into the lower acuity diabetes cohorts."

Following the Stelo announcement, Dexcom's stock price jumped from under $122 to above $131.

Dexcom CEO Talks Stelo Launch, Broader Plans, And GLP1 Misconceptions

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