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 - In Q1 2025, net revenue grew 24% to $6.3 million compared to $5 million in the prior year period [16] - U.S. revenue for Q1 was $4.5 million, while revenue outside the U.S. was $1.8 million [16] - Gross profit increased to $1.5 million from $300,000 in the prior year, driven by improved margins on the Eversense three sixty five product [19] - Net loss decreased to $14.3 million or $0.02 loss per share, compared to a net loss of $18.9 million or $0.03 loss per share in Q1 2024 [21] - Cash, restricted cash, and cash equivalents totaled $64.6 million as of March 31, 2025 [21] Business Line Data and Key Metrics Changes - The Eversense three sixty five product is expected to be the single product offering by the end of 2025, enhancing global supply chain synergies [11] - Approximately 13% of revenue flowed through the office consignment program, with over 100 healthcare providers participating [18] - The company is transitioning reimbursement from 180 days to 365 days for Eversense, with many payers already transitioning their coverage [12] Market Data and Key Metrics Changes - The company anticipates doubling the global patient base in 2025 compared to 2024, with revenue expected to be approximately one-third in the first half and two-thirds in the second half of the year [23] - The European launch of Eversense three sixty five is planned for the second half of 2025, pending regulatory approval [11][22] Company Strategy and Development Direction - The company is focused on transforming diabetes care through technological advancements, including collaborations with Sequel and Sweet Spot [6][7] - The integration of Eversense three sixty five with Sequel's Twist automated insulin delivery system is seen as a significant step forward [6] - Continued development of pipeline products, GEMINI and Freedom, is a priority, with plans to submit an IDE for a pivotal study by year-end [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the early launch metrics for Eversense three sixty five, indicating strong interest and conversion rates [32] - The company expects to mitigate any negative impacts from tariffs on gross profit margins through operational changes and industry exemptions [24] - Full-year gross margins are projected to be between 25% and 30%, with expectations for steady increases each quarter in 2025 [24] Other Important Information - The company received gross proceeds of approximately $27 million from the sale of common stock, extending its cash runway into mid-2026 [22] - All preferred stock was converted into common stock, impacting the diluted earnings per share calculation [21] Q&A Session Summary Question: Guidance despite Mercy contract pause - Management noted that early launch metrics for Eversense three sixty five are positive, and while the Mercy contract pause is a concern, the overall trajectory remains strong [30][32] Question: Direct-to-consumer (DTC) efforts - The company is focusing on social media channels like Facebook, TikTok, and Instagram for DTC marketing, targeting insulin users, particularly in the Medicare population [36][38] Question: Twist integration timeline - Integration work is ongoing, with most efforts focused on verification and validation of the integrated system, expected to be completed by Q3 [41][43] Question: Update on commercial plans for reimbursement - Management expects the majority of commercial plans to convert to the 365-day sensor by the end of the year, with significant progress already made [44][45]