Tandem Diabetes Care (TNDM) 2025 Conference Transcript

Tandem Diabetes Conference Call Summary Company Overview - Company: Tandem Diabetes - Event: RBC's 2025 Global Healthcare Conference - Key Speakers: Lee Wassler (CFO), Susan Morrison (Chief Administrative Officer) Key Points Industry and Market Dynamics - Strong Q1 Performance: Tandem Diabetes reported a strong first quarter with a 6.5% upside surprise and 22% year-over-year growth, shipping 28,000 new pumps [4][1] - Market Expansion: The company is focused on doubling its market size in the U.S. with type two diabetes indications and exploring direct sales outside the U.S. in future years [3][2] - Under-Penetrated Market: Approximately 1 million people in the U.S. live with type one diabetes, with only 40% using pumps, indicating significant growth potential [8][2] Product Performance - Pump Shipments: The breakdown of pump shipments is expected to be roughly 50% new starts and 50% renewals, with a notable shift towards MDI (Multiple Daily Injections) conversions driving growth [5][6] - MDI Conversion Growth: Mobi product has been a key driver for MDI conversions, contributing to double-digit growth for four consecutive quarters [7][8] - Retention and Utilization: Strong customer retention trends were noted, with close to 500,000 users worldwide and improved customer utilization in Q1 [14][15] Type Two Diabetes Opportunity - Market Size: There are approximately 2.3 million insulin-dependent type two diabetes patients in the U.S., with only 5% currently using pumps, presenting a substantial growth opportunity [20][21] - Cautious Rollout: The company is taking a measured approach to marketing and training for the type two market, focusing on understanding the population's needs [21][22] - Synergistic Therapies: The combination of GLP-1 medications and Control IQ technology has shown to improve patient outcomes, indicating a synergistic relationship [26][27] Financial Guidance and Projections - 2025 Guidance: The company has included a modest benefit from type two opportunities and pharmacy expansion in its 2025 guidance, with expectations for significant growth in the back half of the year [25][48] - Gross Margin Targets: Tandem Diabetes aims for 60% gross margins by 2026, driven by Mobi and pharmacy channel expansion [38][39] - Operating Margins: The company is targeting 25% operating margins at 1 million customers, with potential to achieve this sooner than previously anticipated [53][54] Pipeline and Future Initiatives - Product Development: Tandem is advancing multiple projects, including t:slim x MobiPatch and SIGI, leveraging R&D expertise from previous product developments [56][59] - Integration with CGM: The integration with DexCom and Abbott's CGM technologies is expected to drive incremental adoption of pump therapy [40][41] Investor Insights - Opportunities for Growth: The company highlighted multiple growth opportunities, including type two market penetration and pharmacy channel expansion, which are not fully factored into current market valuations [60][61] - Market Positioning: Tandem Diabetes believes it has more opportunities than many competitors in the diabetes space, positioning itself for significant upside potential [61][62]