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.