Tandem Diabetes Care (Nasdaq:TNDM) shares got a massive boost today on first-quarter results that came in ahead of the consensus forecast.
Shares of TNDM rose 26% to $46.08 in midday trading today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — rose slightly.
The San Diego-based automated insulin delivery technology developer reported losses of $42.7 million. That equals 65¢ per share on sales of $191.7 million for the quarter ended March 31, 2024.
Tandem recorded a more than $81 million bottom-line gain on a sales increase of 13.2%.
Earnings per share landed 11¢ ahead of expectations on Wall Street while sales came in well ahead of the forecast of $174 million in revenue.
Tandem said worldwide pump shipments increased 9% from 23,000 pumps to 25,000 pumps in the quarter. The company also launched its new Mobi insulin pump during the three-month period. Other launches include the t:slim X2 pump integrated with the Abbott FreeStyle Libre 2 and the company kicked off the rollout of the t:slim X2 with the Dexcom G7 outside the U.S.
Other highlights included FDA clearance to expand Mobi’s indication for use in younger children and the start of an extended-wear infusion set clinical trial. Tandem also completed a $316.3 million senior convertible notes offering.
“Our outperformance in the first quarter was driven by demand for both the t:slim X2 and our newly launched Tandem Mobi, validating our portfolio strategy that allows us to address a greater market by meeting the needs and preferences of more people living with diabetes,” said John Sheridan, president and CEO. “We are well-positioned to deliver on our 2024 objectives, along with longer-term growth and profitability goals.”
Tandem expects to record full year non-GAAP sales of $868 million, a significant rise from the previous projection of $850 million.
More on what’s coming from Tandem Diabetes Care
Sheridan said on the company’s first-quarter earnings call that the company plans to expand its hold of the market with Mobi. Meanwhile, he says, meaningful demand for t:slim X2 continues and the company continues to gain ground with its CGM integrations.
The company expects to offer G7 integration with Mobi in the second quarter. It also plans for an integration of both its pumps with Abbott’s FreeStyle Libre 3 outside the U.S. in the year ahead.
Tandem expects to roll out an updated Control-IQ software platform on both its pumps later this year as well. The company also made “great progress” on clinical trials aimed to support expanding Control-IQ’s indication to the type 2 diabetes population. It expects to complete enrollment this month.
“We are laying the foundation for 2024 to be a transformational year for Tandem, much like when we launched our first automated insulin delivery algorithm approximately 5 years ago,” Sheridan said. “There is growing excitement across our company as we deliver on our strategy to bring greater choice and benefits to people living with diabetes worldwide.”
