Tandem Diabetes Care (TNDM) Bank of America Global Healthcare Conference 2026 summary

Business performance and transformation

• Achieved record Q1 shipments, sales, and gross margin, with positive free cash flow, despite ongoing business model changes.

• Launched PayGo pharmacy model late in Q1 and began direct shipments in select international markets, diversifying revenue streams.

• Transition to PayGo and direct international sales created revenue headwinds, but fundamentals remain strong and guidance for the year is reaffirmed.

• Pump shipments expected to increase 20% from Q1 to Q2, with headwinds from PayGo and inventory buybacks factored into forecasts.

• International headwinds from inventory buybacks expected to shift into Q2, with Mobi launch timing influencing distributor orders.

Pharmacy channel transition and strategy

• Pharmacy channel reset in Q1, with less than 5% of shipments and recurring supply orders converted to PayGo, expected to grow each quarter.

• Major PBM contracts amended, achieving 40% formulary coverage, already at the low end of the annual goal.

• Payers increasingly receptive to pharmacy channel, valuing clinical outcomes and volume, with pricing and rebate strategies tailored by tier and payer.

• Transitioning patients from DME to pharmacy involves benefit checks, new prescriptions, and education, with copay incentives used to encourage switching.

• Deductible impacts are more pronounced in DME, but pharmacy channel alignment with CGMs may help patients meet deductibles faster.

Product innovation and market expansion

• New product launches, including entry into the tubeless pump segment with Mobi, expected to drive new starts and market share.

• Mobi offers unique features such as seven-day wear, rechargeable design, and flexible cartridge options, differentiating it from competitors.

• Filing for Mobi expected in Q2, with launch planned before year-end; product interchangeability aims to minimize shipment slowdowns ahead of launch.

• New starts projected to return to growth in Q2, with long-term double-digit growth targeted, driven by pharmacy and new products.

• Focus remains on converting multiple daily injection users to pump therapy, with 60% of the market still untapped.