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]