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 Q2 2025, net revenue grew 37% to $6.6 million compared to $4.9 million in the prior year period, driven by new Eversense three sixty five insertions [22][28] - Gross profit for Q2 2025 was $3.1 million, an increase of $2.8 million from the prior year, primarily due to increased margins on the three sixty five day product and a one-time gain of $700,000 from VAT recoveries [26][27] - Net loss decreased to $14.5 million or $0.02 loss per share in Q2 2025, compared to a net loss of $20.3 million or $0.03 loss per share in Q2 2024 [27][28] Business Line Data and Key Metrics Changes - New patient starts for Eversense increased by 79% year-over-year and 37% from Q1 2025, with leads more than doubling compared to the prior year [6][8] - The consignment channel accounted for over 40% of revenue in Q2 2025, with revenue recognized at the time of procedure [25][26] - The average selling prices in the consignment channel are approximately two times the ASPs through the Ascensia direct shipment channel [26] Market Data and Key Metrics Changes - U.S. revenue for Q2 2025 was $4.9 million, while revenue outside the U.S. was $1.7 million [22] - The company expects to double the global patient base in 2025 compared to 2024, with the majority of revenue expected in Q4 due to new patient starts and reorders [28][29] Company Strategy and Development Direction - The company aims to enhance Eversense awareness and adoption through increased direct-to-consumer (DTC) marketing and expanding the EON Care network [4][5] - Plans include launching Eversense three sixty five in Europe later this year and collaborating with other companies to improve market presence [9][10] - The company is focused on developing the Gemini and Freedom systems, targeting a U.S. submission for Gemini in mid-2026 and a launch for Freedom about a year after Gemini [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth of Eversense, with expectations for increased patient starts and reorders as the first three sixty five adopters approach their next insertions [7][29] - The company anticipates full-year 2025 global net revenue to be approximately $34 million to $38 million, considering various factors including regulatory approval timelines and marketing spending [28][30] - Management is monitoring the impact of tariffs and expects to mitigate negative effects while maintaining favorable gross profit margins [30] Other Important Information - The company raised approximately $78 million in gross proceeds during Q2 2025, which will support ongoing initiatives and product launches [18][20] - A reverse stock split is being considered to facilitate broader investment opportunities and inclusion in indices with stock price requirements [21][22] Q&A Session Summary Question: Retention rates for Eversense - Management indicated that historical retention rates are around 75% from sensor one to two, increasing to about 85% from sensor two to three, and about 95% from sensor three and beyond [36][37] Question: Consignment channel revenue contribution - The consignment channel is expected to continue increasing as a percentage of total revenue, supported by Medicare pricing and EON Care efforts [41][42] Question: Mix of diabetics using Eversense - Currently, approximately 75% of patients using Eversense are type 2 diabetics, reflecting a shift from the initial focus on type 1 patients [47][48] Question: EON Care revenue contribution - EON Care services contribute low single-digit percentages to revenue, but this is expected to grow as the network expands [53] Question: Commercialization of the Twist pump - The company plans significant co-marketing efforts with Sequel for the Twist pump, with a formal development agreement in place [56][57] Question: CMS proposal for competitive bidding - Management confirmed that Eversense is compensated as a medical benefit under Medicare and will not be part of the competitive bidding process [66][67] Question: Timing for EON Care benefits - The company currently has around 40 professionals in the EON Care network, with plans to increase this to 50 in the next few months and double that by 2026 [68][69]

Core Viewpoint - The article discusses the recent funding activities of Senseonics Holdings, including a $50 million public offering and a $25 million private placement with Abbott, aimed at supporting the commercialization and development of its Eversense 365 continuous glucose monitoring (CGM) system [1][3]. Funding Structure and Use - Senseonics plans to raise approximately $50 million through a public offering, with an additional $25 million from Abbott, totaling $75 million (around 540 million RMB) [1][3]. - The funds will be allocated for commercial expansion of Eversense 365, product development, operational expenses, and debt repayment [3]. Strategic Implications of Abbott's Investment - Abbott will hold approximately 4.99% of Senseonics' common stock post-transaction, indicating a strategic partnership rather than a controlling stake [4]. - The investment allows Abbott to strengthen its position in the evolving CGM market, where competition is increasing from companies like Dexcom and Medtronic [4][6]. - Abbott's investment is seen as a proactive measure to counter potential market disruptions and to diversify its CGM product offerings [6][7]. Eversense 365 Overview - Eversense 365 is the first FDA-approved implantable CGM system that lasts for 365 days, significantly reducing the burden of daily management for patients [8][12]. - The system has a mean absolute relative difference (MARD) of 8.8%, with a 90% sensor function retention rate over a year [12][14]. Competitive Advantages of Eversense 365 - Eversense 365 offers a longer sensor life compared to traditional CGMs, which require frequent replacements every 10 to 14 days [13]. - The system features a removable transmitter, allowing for flexibility in daily activities and reducing skin irritation [15][17]. - It includes built-in alerts for high and low blood sugar levels, enhancing patient safety [16]. Future Product Development - Senseonics is developing two additional products, Gemini and Freedom, which aim to further enhance its product line and adapt to future market needs [11][19]. - These products are expected to play significant roles in closed-loop systems, providing Abbott with strategic options for future growth [7].

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]

Financial Data and Key Metrics Changes - In Q4 2024, net revenue was $8.3 million, an increase from $8 million in the prior year period [27] - For the full year 2024, total revenue was $22.5 million compared to $22.4 million in 2023, with US revenue at $15.3 million and revenue outside the US at $7.2 million [35] - Net loss for Q4 2024 was $15.5 million, a decrease from $17.2 million in Q4 2023, primarily due to improved gross profit margins [34] - Full year net loss was $78.6 million, compared to $60.4 million in 2023, with the increase attributed to reduced gains from note exchanges and derivative fair value changes [39] Business Line Data and Key Metrics Changes - The Eversense 365 product launch has seen a 56% increase in the patient base to approximately 6,000 global patients in 2024 [23] - The number of annual US Eversense prescribers increased by 73% to over 2,400 [24] - Approximately 81% of the patient base switched from other continuous glucose monitors (CGMs) [25] Market Data and Key Metrics Changes - US revenue for Q4 2024 was $6.2 million, while revenue outside the US was $2.1 million [27] - The company anticipates launching Eversense 365 in Europe in the second half of 2025, following CE Mark approval [12] Company Strategy and Development Direction - The company is focused on expanding its product pipeline, including the Gemini and Freedom systems, which will enhance patient experience [13][14] - Partnerships with health systems like Mercy Health are aimed at increasing access to Eversense for patient populations [16] - The company plans to commercialize Eversense 365 in Europe and continue building on the technology platform [47] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in 2025, highlighting the successful initial launch of Eversense 365 as a significant catalyst [46] - The CGM market is viewed as an exciting space in medical devices, with a large opportunity to simplify diabetes management [48] - The company expects full year 2025 global net revenue to be approximately $34 million to $38 million, with a focus on transitioning US patients to Eversense 365 [42] Other Important Information - The company has simplified its capital structure, repaying $20.4 million in convertible notes and converting preferred stock into common stock [40][41] - Cash, restricted cash, and cash equivalents totaled $74.9 million as of December 31, 2024 [39] Q&A Session Summary Question: What should we expect when taking Eversense 365 OUS? - Management anticipates a more gradual inventory stocking in Europe compared to the US [53] Question: What are the early signs of 365-day insertions in the Mercy system? - There is excitement around the 365 product, with a focus on expanding to primary care for Type 2 patients [55] Question: Clarification on prescriber numbers? - The 2,400 prescribers represent an annual number, while over 1,000 was since launch [62] Question: Revenue growth expectations from international versus US? - Most growth is expected from the US, with significant increases anticipated from the European launch in the second half of the year [64] Question: Update on Medicare reimbursement efforts? - Reimbursement is available for Medicare patients, with ongoing work on pricing expected to resolve in the next quarter [74] Question: OpEx cadence throughout the year? - SG&A expenses are expected to be linear across quarters, with slight increases due to sales commissions from the consignment program [81]