Strong Sales Growth and …
  • Worldwide Sales Growth: 12% growth, reaching $222 million in Q2 2024.

  • Year-to-Date Worldwide Sales: $415 million with approximately 55,000 pump shipments.

  • US Sales: $157 million in Q2, 20% sequential growth and 8% year-over-year growth.

  • International Sales: $65 million in Q2, 22% year-over-year growth.

  • Gross Margin: 51% in Q2 2024.

  • Adjusted EBITDA: Negative 1% of sales in Q2 2024.

  • Total Cash and Investments: Over $450 million at the end of Q2 2024.

  • 2024 Sales Guidance: Increased to $885 million to $892 million, reflecting 15% growth year-over-year.

  • Q3 2024 Sales Guidance: $222 million to $225 million worldwide, 15% to 16% growth compared to Q3 2023.

Release Date: August 01, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Tandem Diabetes Care Inc (NASDAQ:TNDM) reported a strong financial performance with a 12% worldwide sales growth in Q2 2024, reaching $222 million, marking the second highest sales quarter in the company’s history.

  • The launch of the Tandem Mobi pump platform has been successful, with strong demand and positive feedback from both users and healthcare providers.

  • The company has seen a significant increase in new prescribers for Mobi, indicating an expanded prescriber audience and market penetration.

  • Tandem Diabetes Care Inc (NASDAQ:TNDM) has increased its 2024 sales guidance to a range of $885 million to $892 million, reflecting a 15% growth year-over-year.

  • The company is making progress with new sensor integrations and international product launches, including the t:slim X2 with G7 integration, which is contributing to growth outside the US.

Negative Points

  • Despite the positive sales growth, Tandem Diabetes Care Inc (NASDAQ:TNDM) reported an adjusted EBITDA of negative 4% of sales for the first half of 2024.

  • The company faced a recall for its t:slim iOS app due to a software issue, although it was quickly addressed, it remains an open recall.

  • There is still uncertainty regarding the long-term trends of new product launches, as early data points may not be indicative of future performance.

  • The company is facing competitive pressure, particularly from Medtronic, which is impacting competitive conversions.

  • Gross margins are temporarily offset by higher manufacturing costs of Mobi at current volumes, although improvements are expected as volumes increase.

Q & A Highlights

Q: What is driving the switch from patch pump competitors to Tandem’s Mobi? A: John Sheridan, President and CEO, explained that the switch is largely driven by the Control-IQ algorithm, which former patch users find appealing due to its superior performance. This has led to a significant increase in conversions from patch devices to Tandem in the last two quarters.

Q: Can you provide insights into the new patient trends and expectations for the rest of the year? A: Leigh Vosseller, CFO, noted that while new patient numbers were down year-over-year, the decline has decelerated. The company expects to see new patient growth in the second half of the year, driven by Mobi’s impact, particularly in converting MDI users.

Q: How is Mobi performing in terms of market penetration and prescriber expansion? A: Mark Novara, Chief Commercial Officer, highlighted that Mobi is attracting new customers, with more than half coming from MDI. The product is also expanding Tandem’s prescriber base, resonating well with healthcare providers and patients alike.

Q: What is the status of the type 2 diabetes study and its potential market impact? A: Leigh Vosseller stated that the type 2 diabetes study enrollment is complete, with an FDA filing expected by the end of the year. The company is preparing for a potential 2025 launch, focusing on channel access and commercial strategies to capitalize on this opportunity.

Q: How is Tandem addressing supply chain concerns for Mobi and future product launches? A: John Sheridan assured that there are no supply chain issues with Mobi, and the company is well-prepared to meet demand. Tandem is also gearing up for future launches, including the integration with Abbott’s FreeStyle Libre 3 Plus sensor, expected to drive further growth.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.

link

Leave a Reply

Your email address will not be published. Required fields are marked *