Tandem Diabetes Care FY Conference Summary Company Overview - **Company**: Tandem Diabetes Care (NasdaqGM:TNDM) - **Date of Conference**: March 04, 2026 Key Points Industry and Market Dynamics - The diabetes care market has evolved, with a shift from simple device outcomes to include market access and form factor as competitive elements [5][6] - The introduction of new competitive devices has changed the basis of competition in the industry [5] Strategic Initiatives - **2024 Strategy**: Focus on monetization of the sales force, innovative products, and market access through the pharmacy channel [6] - **Sales Force Expansion**: Increased sales force productivity through new models and a new CRM system [6][7] - **Direct Market Access**: Initiated direct sales in three new countries in 2025, with plans to expand to three more in 2027 [7][8] Product Innovations - **Control-IQ+**: Launched in 2025, designed to be user-friendly and competitive in the market [8] - **FreeStyle Libre 3 Integration**: Enhanced compatibility with t:slim, targeting the 60% of U.S. users on iOS [9] - **Mobi Development**: Ongoing enhancements to Mobi, with Android compatibility added [9] Pharmacy Channel Strategy - **PAYGO Model**: Transitioning to a pay-as-you-go model, expected to double reimbursement over a four-year product life [14][19] - **Market Positioning**: Anticipated monthly cost of $350 per patient under PAYGO, compared to $83 through traditional DME [21][22] - **Competitive Advantage**: Established install base allows for quicker conversion to pharmacy channel compared to smaller competitors [23] Financial Projections - **Growth Expectations**: Projecting 10%-11% growth in pumps shipped, with over half expected to come from renewals [57][58] - **Cost Structure**: Anticipated gross margins of 65% and operating margins of 25% as the business model shifts [132] Future Product Pipeline - **Mobi Tubeless**: Expected to be a game changer with extended wear capabilities and improved user experience [97][100] - **Closed Loop Algorithm**: Development of a fully closed loop system, with clinical studies planned for 2026 [108][109] Challenges and Considerations - **Patient Transition**: Educating existing patients on the new pharmacy model and ensuring they understand the benefits [41][49] - **Contracting Process**: Building relationships with pharmacy benefit managers (PBMs) and navigating the contracting landscape [86][90] Conclusion - Tandem Diabetes Care is positioned for significant growth through innovative product offerings and a strategic shift to a pharmacy-based model, with expectations of improved profitability and market share in the diabetes care industry [132]