Tandem Diabetes Care (TNDM -6.9%) slumps on average volume on the heels of its presentation at the Piper Jaffray Healthcare Conference today.
Investors appear to be reacting to a temporary slowdown in business as U.S. customers wait for the FDA nod on Control-IQ, expected in the near future. The company said that it saw a slowdown in late Q3 that will extend through almost all of Q4. About 105K U.S. patients currently use their pump and 80% of those can be updated to Control-IQ (company plans to offer the update at no charge).
There is also looming competition from a new Medtronic device, expected about mid-2020.
U.S. market for insulin pumps currently 30% penetrated compared to 24% ~15 years ago (analyst comment) but the company envisions 50% penetration in the next 3-5 years driven primarily by much improved ease of use.
The company’s income is ~$4K per pump in the U.S. versus ~$2K in Europe (due to broader range of distributor responsibilities there).
Agreement with Abbott should be finalized shortly. May be about a year before commercialization begins on Libre 2.0 device. Meaningful revenue expected no earlier than 2021.
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