Tandem Diabetes Care Inc (TNDM) Moves the Needle


Investors are racing to buy Tandem Diabetes Care Inc (NASDAQ:TNDM) shares, after the insulin pump maker announced FDA approval and commercial launch of the t:slim X2™ Insulin Pump with Dexcom G5® Mobile continuous glucose monitoring (CGM) integration, the first sensor-augmented insulin pump approved to let users make treatment decisions without pricking their finger.

TNDM stock reacted to the news, jumping nearly 46% to $1.02 in Monday’s trading session.

The software featured on this pump will also be available to current t:slim X2 Pump users at no cost via remote software update, allowing them to add CGM integration to their existing pumps from home using a personal computer. Individual emails are being sent directly to t:slim X2 Pump customers with instructions on how to perform the update. The t:slim X2 Pump with Dexcom G5 Mobile CGM integration is approved for ages 6 and older.

This approval marks the Company’s fifth new insulin pump launch in only 5 years and the second featuring Dexcom technology. It is the only available pump that conveniently displays a user’s insulin delivery activity and Dexcom G5 Mobile CGM data together on a single device. The t:slim X2 Pump is also the only insulin pump capable of remote software updates, allowing existing users to add features like CGM integration from home. It is up to 38% smaller than other pumps, but includes advanced features like a large color touchscreen, Bluetooth® radio, rechargeable battery, USB connectivity, 300-unit insulin capacity and watertight construction (IPX7).

Tandem CEO Kim Blickenstaff commented, “We are setting a new standard in our industry by simultaneously offering our existing and future customers the benefits of best-in-class CGM integration on our simple-to-use touchscreen insulin pump […] The t:slim X2 Pump is designed to accelerate the pace in which we can bring new innovations to people with diabetes, which is of particular importance as we develop software updates to add automated insulin delivery algorithms to our platform.”

Steve Pacelli, EVP of Strategy and Corporate Development at Dexcom, noted “Dexcom has been moving its technology forward at a rapid pace, and Tandem’s ability to roll out remote software updates like this opens up exciting possibilities for faster integrations of our future products […] We are excited to have our latest CGM technology integrated with their t:slim X2 Insulin Pump, and to see it offered not only to new customers but also to existing t:slim X2 Pump users.”

On the ratings front, TNDM has been the subject of a number of recent research reports. In a report issued on June 27, Cowen analyst Doug Schenkel reiterated a Hold rating on TNDM, with a price target of $1.50, which represents a potential upside of 63% from where the stock is currently trading. On June 6, Piper Jaffray’s Matthew O’Brien reiterated a Hold rating on the stock and has a price target of $1.50.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Doug Schenkel and Matthew O’Brien have a yearly average return of 5.6% and 21.6% respectively. Schenkel has a success rate of 67% and is ranked #654 out of 4616 analysts, while O’Brien has a success rate of 66% and is ranked #53.

 

Tandem Diabetes Care, Inc. is a medical device company, which designs, develops and commercializes products for people with insulin dependent diabetes. 

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