Tandem Diabetes Care (TNDM) Stifel 2024 Healthcare Conference summary

Business performance and product momentum

• Pump shipments grew over 20% year-over-year, surpassing previous goals and showing strong business momentum.

• Mobi pump drove sequential new patient growth from Q1 to Q3, attracting new physicians and younger patients, and expanding the prescriber base.

• Renewal rates remain at historical highs, with a 70% capture rate within 18 months of warranty expiration, and the opportunity base is expanding from 50,000 expiring warranties in 2023 to over 80,000 in 2025.

• Guidance for Q4 is set at a level considered achievable, reflecting typical seasonality and not indicating any slowdown in business momentum.

• Integration of new sensor technologies (G7, Libre) and product launches are expected to provide additional growth tailwinds.

Strategic outlook and growth drivers for 2025 and beyond

• 2025 growth will be driven by the continued impact of 2024 product launches, at least four new growth opportunities, and a larger installed base.

• Predictable revenue streams include renewals and supply sales to a global base of 480,000 users.

• New opportunities such as Type 2 indication, FreeStyle Libre launches (U.S. and international), pharmacy access, and Mobi Android expansion are expected to contribute, but will be factored into guidance as trends become clearer.

• The competitive landscape remains robust, with significant underpenetration in both U.S. and international markets.

Type 2 diabetes and pharmacy channel expansion

• Type 2 pivotal study is complete, with FDA submission planned by year-end and a go-to-market strategy in preparation.

• U.S. market for intensive insulin users is over two million, with potential pump therapy adoption rising from 15% to over 25% due to CGM adoption.

• Currently, 5-10% of new pump shipments are for Type 2, totaling about 30,000 U.S. users.

• First pharmacy contract signed for durable pumps, with more negotiations underway; pharmacy channel expected to grow over the next 3-4 years, especially with Mobi and future Sigi launches.

• Pharmacy contracts are expected to be at least as favorable as DME, potentially providing pricing premiums and reducing patient out-of-pocket costs.