Summary of Senseonics Conference Call Company Overview - **Company**: Senseonics - **Product**: Eversense Continuous Glucose Monitoring (CGM) System - **New Product Launch**: 365 Day CGM, designed for one-year use without the need for frequent sensor replacements [2][3] Key Points and Arguments Product Differentiation - The 365 Day CGM is a significant advancement over previous models (90-day and 180-day) and is designed to provide continuous monitoring for a full year [2] - Unique feature: No through-skin component, allowing for easier user experience post-insertion by a medical professional [2][3] - Calibration requirements have been reduced from daily to once a week, enhancing user convenience [5] Commercial Strategy - Transitioning to a direct-to-consumer (DTC) sales model starting January 1, 2026, to capture full revenue and improve margins [6][10] - The U.S. sales force will consist of 100 representatives, focusing on high-prescribing endocrinologists and diabetes centers [10] - Anticipated revenue growth due to the elimination of revenue sharing with Ascensia, which previously accounted for a 20% revenue reduction [11][12] Market Dynamics - The CGM market is valued at $13 billion, growing at a 20% CAGR, with only 10 million patients currently using CGM technology [25] - Senseonics aims to double its patient base from 6,000 to 12,000, indicating significant growth potential [25][27] Patient Retention and Growth - Historical retention rates show that 70%-75% of patients remain on their first sensor, with retention improving with subsequent sensors [19][20] - The company is focused on maintaining communication with patients to address any issues promptly [23] Direct-to-Consumer Campaign - The DTC campaign has shown success, with new patient growth up 160% and leads increasing by 300% [17][15] - The DTC budget is expected to remain between $10 million and $15 million, spread throughout 2026 [28] International Expansion - CE Mark approval for the 365 product is expected by the end of the year, with a planned launch in Europe after establishing a dedicated sales force [29][30] - The company faces challenges in international DTC marketing due to regulatory limitations, relying more on healthcare professional (HCP) sales [31] Pipeline Development - Upcoming products include Gemini, which will feature an internal battery for continuous data collection, and Freedom, which will integrate Bluetooth technology for type one diabetes management [34][35] - Clinical trials for Gemini and Freedom are anticipated to cost around $5 million each [40] Financial Outlook - The break-even point remains at approximately 50,000 patients, with expectations for increased profitability due to improved revenue recognition and margins from the direct sales model [43][44] - Recent insider purchases of shares indicate confidence in the company's growth trajectory and valuation [45] Additional Important Insights - The company is focused on pump integration and partnerships with other pump providers to enhance product offerings [42] - The transition from Ascensia to Senseonics' direct sales model is expected to streamline operations and improve financial performance [11][14] This summary encapsulates the key points discussed during the Senseonics conference call, highlighting the company's strategic direction, product innovations, market opportunities, and financial outlook.

Financial Data and Key Metrics Changes - The company reported worldwide revenue of $1.21 billion for Q3 2025, a 22% increase compared to $994 million in Q3 2024, with organic revenue growth of 20% [17] - U.S. revenue totaled $852 million, up 21% from $702 million in Q3 2024, driven by growth in Type 2 diabetes contributions [17][18] - International revenue grew 22% to $357.4 million, with organic growth of 18%, marking the third consecutive quarter of accelerating international growth [18] - Gross profit was $741.3 million, representing 61.3% of revenue, down from 63.0% in Q3 2024, impacted by higher scrap rates [19][20] - Operating income was $272.9 million, or 22.6% of revenue, compared to $212.0 million, or 21.3% in Q3 2024 [22] - Net income reached $242.5 million, or $0.61 per share, the highest quarterly earnings per share in the company's history [22] Business Line Data and Key Metrics Changes - The company continues to see strong performance in Type 2 diabetes, with new customer starts coming from the entire Type 2 population due to expanded coverage [5][6] - The Dexcom Smart Basal feature aims to improve basal insulin management for Type 2 customers, currently under FDA review [9] - Stelo surpassed $100 million in revenue within its first year, indicating strong market acceptance and potential for international expansion [10] Market Data and Key Metrics Changes - Coverage for nearly 6 million Type 2 non-insulin lives has been established, representing about half of the Type 2 NIT commercial population in the U.S. [6] - France and Canada are highlighted as fast-growing markets, with significant new coverage contributing to growth [18] Company Strategy and Development Direction - The company is focused on expanding coverage for Type 2 diabetes patients and enhancing product personalization [8][10] - The launch of the G7 15-day system is anticipated to enhance the company's market position, with contracts finalized with major payers [11][12] - The company is committed to improving customer experience through digital innovations like My Dexcom Account [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing expansion of CGM access for Type 2 diabetes, viewing it as a matter of "when, not if" [6][7] - The company is optimistic about future growth opportunities, particularly in expanding access and improving product offerings [15][22] Other Important Information - The company raised its revenue guidance for 2025 to a range of $4.630 billion to $4.650 billion, reflecting approximately 15% growth for the year [23] - Operating expenses increased to $468.4 million in Q3 2025, compared to $413.9 million in Q3 2024, as the company continues to invest in R&D [21] Q&A Session Summary Question: Insights on 2026 growth estimates - Management refrained from providing specific guidance for 2026 but indicated a double-digit growth runway based on current coverage [27] Question: G7 performance and impact of quality issues - Management confirmed that quality issues have been resolved, and while there was a slight impact on new starts, they expect to return to record levels in Q4 [30][32] Question: Growth in new patients and market strategy - Growth is observed across all Type 2 markets, with ongoing adjustments in marketing strategies to capture new patient segments [35] Question: Expanded coverage potential in 2026 - The base case for guidance includes current coverage, with potential for expanded coverage not factored in [39][40] Question: Revenue contribution from the 15-day sensor - The broader launch of the 15-day sensor is expected soon, with nominal revenue contribution anticipated in the current year but significant potential in 2026 [46][47] Question: Gross margin and scrap rate impacts - Management indicated that scrap and freight issues are expected to improve, with a return to normalized margins anticipated in 2026 [56][67] Question: Type 2 user utilization rates - Utilization rates for Type 2 users are strong, with AID customers showing the highest utilization, followed by intensive insulin users [68] Question: Quality issues and new patient starts - Quality issues had a slight impact on Q3 starts, but management expects to return to record levels without needing expanded access [72]

Summary of Eversense Three Sixty Five Commercial Update Call Company and Industry - **Company**: Senseonics - **Product**: Eversense three sixty five (CGM - Continuous Glucose Monitoring) - **Industry**: Diabetes care and medical devices Core Points and Arguments 1. **Commercialization Strategy Change**: Senseonics announced a memorandum of understanding with Ascensia to integrate the full CGM commercial organization back into Senseonics effective January 1, 2026, aiming for clearer focus and targeted resources to build the Eversense brand [4][5][6] 2. **Leadership Transition**: Brian Hansen, previously leading Ascensia's Eversense Commercial Operations, will become the new Chief Commercial Officer at Senseonics, bringing his leadership team to drive Eversense sales [5][6][12] 3. **Market Growth**: Eversense three sixty five has seen significant growth, with new patient starts in Q2 growing 79% year-over-year and weekly new patient shipments up nearly 50% in Q3 compared to Q2 [12][15] 4. **Record Performance**: August set records for the highest number of sensor insertions and new patient shipments in the history of Senseonics [12][13] 5. **Financial Implications**: The elimination of the Ascensia revenue share is expected to improve revenue by over 20% and gross profit margin to exceed 50% next year, with potential to reach 70% at scale [19][20] 6. **Investment in Growth**: Senseonics plans to fund additional investments in sales and marketing through improved revenue and a partnership with Hercules Capital for a non-dilutive debt facility of up to $100 million [19][20] 7. **Transition Plans**: The transition to full commercial rights is expected to be smooth, with minimal disruption for patients and providers, and is aligned with PHC's strategic focus [9][21] 8. **International Expansion**: The company is preparing for the launch of Eversense three sixty five in European markets, with activities expected to begin in Q4 upon receiving CE Mark approval [14][85] Other Important Content 1. **Patient-Centric Focus**: The integration aims to enhance patient experience and access to Eversense, with a commitment to improving the lives of people affected by diabetes [9][10] 2. **DTC Campaign Success**: The direct-to-consumer (DTC) campaign has shown promising results, with increased awareness and lead generation [53][80] 3. **Future Product Pipeline**: The transition will also support the upcoming launches of the Gemini and Freedom systems, expected in late 2026 and late 2027 respectively [22][25] 4. **Shareholder Commitment**: Ascensia, owning nearly 10% of Senseonics, intends to maintain its investment, indicating continued support for the company's growth [9][65] 5. **Operational Efficiency**: The integration of commercial and development organizations is expected to enhance operational efficiency and responsiveness to market needs [18][19] This summary encapsulates the key points discussed during the Eversense three sixty five Commercial Update Call, highlighting the strategic changes, growth metrics, financial implications, and future plans of Senseonics in the diabetes care market.

Financial Data and Key Metrics Changes - The company is guiding for 14% to 15% top-line growth for 2025, with an expectation of about 200 basis points of operating margin leverage [14][15] - The company aims to exit 2025 with a gross margin around 66%, up from a full-year guidance of approximately 62% [73] Business Line Data and Key Metrics Changes - The company reported a strong performance in the Stelo product line, achieving $100 million in revenue within the first twelve months of its launch [39] - The G7 product has seen significant enhancements, with improvements in warranty replacements and complaint rates, indicating a positive trend in reliability and accuracy [20][21] Market Data and Key Metrics Changes - The company is seeing increased coverage for continuous glucose monitoring (CGM), with more people having access than currently using the technology, indicating a strong growth opportunity [7] - International markets are expected to contribute to growth, with a tiered pricing model allowing for incremental revenue from new markets [33][34] Company Strategy and Development Direction - The company is focused on executing its commitments for 2025, with priorities including expanding CGM coverage globally and enhancing its international presence [9][12] - The company is building a metabolic health platform, with plans to leverage the Stelo product and over-the-counter CGM to reach a broader population [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong double-digit growth in the foreseeable future, driven by expanding healthcare coverage and market opportunities [15][70] - The management team is optimistic about the upcoming fifteen-day sensor launch, emphasizing the importance of ensuring a smooth transition for users [25][28] Other Important Information - The company is addressing concerns regarding the reliability of the G7 product, stating that improvements have been made and that deployment challenges have been resolved [20][22] - The company is preparing for a randomized controlled trial (RCT) for Type 2 diabetes patients not using insulin, with results expected in the first half of next year [49][51] Q&A Session Summary Question: What are the strategic priorities for the next 12 to 24 months? - The company emphasized executing on 2025 commitments, expanding CGM access, and enhancing international presence [9][12] Question: How does the company view growth in the upcoming quarters? - Management indicated that guidance reflects a commitment to stability and execution, with expectations for continued patient growth and revenue alignment [29][30] Question: What is the outlook for the Type 2 non-insulin opportunity? - The company is seeing traction in the non-insulin space and is focused on ensuring physicians are aware of coverage options for their patients [46][47] Question: How is the company addressing competitive threats from new products? - Management expressed confidence in the G7 product's features and its ability to compete effectively against emerging products in the market [66][68] Question: What are the expectations for gross margins in 2026? - While specific guidance for 2026 was not provided, management indicated strong tailwinds for margin expansion due to new product launches and cost reductions [75][76]