MiniMed Group (MMED) Wells Fargo 21st Annual Healthcare Conference summary

U.S. business performance and product innovation

• U.S. business saw high single-digit underlying growth in Q1, with over 20% growth in new pump sales, driven by a series of new product launches including CGM, Flex, and Simplera, which have progressively increased daily orders and shipments.

• Sustained growth is attributed to a cascading release of new products, not just a single innovation, with the first hardware refresh in over a decade generating significant excitement.

• The upcoming Fit patch pump, filed for FDA approval and expected to launch in summer next year, aims to be a strong number two in the market, offering up to seven days of wear, a 300-unit reservoir (50% more than competitors), and advanced automation.

• Fit targets both MDI users seeking patch pumps and current patch pump users desiring longer wear and larger reservoirs, with minimal expected deferrals ahead of launch.

• Manufacturing capacity for Fit will support 20,000 patients at launch, with a ramp-up plan similar to previous product launches.

Market expansion, product portfolio, and technology

• Patch pumps are expected to grow faster than the overall pump market, but durable pumps will also continue to grow; the strategy is to offer solutions for every segment, including smart pens, patch pumps, and durable pumps.

• The Vivera fully closed-loop algorithm trial is fully enrolled, with launch planned for the second half of 2027, aiming to simplify diabetes management by reducing or eliminating meal announcements.

• Vivera is designed to accommodate a spectrum of patient engagement, from highly engaged to minimal interaction, supporting both Type 1 and Type 2 diabetes and potentially expanding the market.

• Fit and Vivera are expected to resonate especially with Type 2 patients due to higher insulin needs and simplicity, with 40% of new U.S. starts already Type 2.

• Expansion into the primary care channel and modest sales force growth are anticipated as volumes increase.

Commercial model, retention, and regulatory environment

• Type 2 patients prefer simpler systems and higher insulin capacity; onboarding and retention programs like StartRight and Stay Right support both Type 1 and Type 2, with similar retention rates between groups.

• GLP-1 usage has not significantly impacted new pump starts among Type 2 patients, and there remains substantial market headroom.

• Removal of the C-peptide requirement for Medicare coverage could be a major catalyst, but no changes are expected before year-end; next opportunity is next year.