Dexcom (DXCM) is among the diabetes management names under pressure on Wednesday following a report saying this technology giant is making major progress on no-prick blood glucose tracking. According to the news, the tech giant’s glucose monitoring system could ultimately find its way into the company’s smartwatch line if perfected.

GLUCOSE MONITORING PROJECT: Apple's (AAPL) longtime secret endeavor, dubbed E5, to measure how much glucose is in someone's body without needing to prick the skin for blood has hit some major milestones recently, Mark Gurman of Bloomberg reports, citing people familiar with the effort. The company now believes it could eventually bring glucose monitoring to market, sources told Bloomberg. Apple's glucose monitoring system could ultimately find its way into the company's smartwatch line and if perfected, "would be a boon to diabetics and help cement Apple as a powerhouse in health care," says Gurman.

There are still years of work ahead, the author says, but the move could upend a multibillion-dollar industry. Roughly 1 in 10 Americans have diabetes, and they typically rely on a device that pokes the skin for a blood sample. There are also patches from Dexcom and Abbott Laboratories (ABT) that are inserted into the skin but need to be replaced about every two weeks. Apple is taking a different approach, using a chip technology known as silicon photonics and a measurement process called optical absorption spectroscopy. The system uses lasers to emit specific wavelengths of light into an area below the skin where there is interstitial fluid — substances that leak out of capillaries — that can be absorbed by glucose. The light is then reflected back to the sensor in a way that indicates the concentration of glucose. An algorithm then determines a person’s blood glucose level, the report explains.

PRICE ACTION: In Wednesday afternoon trading, shares of Dexcom have dropped about 4% to $109.84, Insulet’s (PODD) stock had slipped about 1% to $288.92, and Abbott’s has slid almost 1% to near $103 per share. Other publicly traded companies in the space include Tandem Diabetes (TNDM) and Medtronic (MDT).