Tandem Diabetes Care Inc (NASDAQ:TNDM) Struggles To Hold Gains


Tandem Diabetes Care Inc (NASDAQ:TNDM) has been having an extremely rough year, but all of that may have started to turn around to start this week. Shares of the company had been down as much as 85% over the past 12 months. But we saw near record volume and a massive rally on Monday as the company announced the 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.

According to the release, “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.”

Tandem Diabetes Care Inc (NASDAQ:TNDM) frames itself as a medical device company, designs, develops, and commercializes various products for people with insulin-dependent diabetes in the United States. The company’s flagship product is the t:slim X2 insulin delivery system that comprises t:slim X2 pump, its disposable insulin cartridge, and an infusion set. It also provides t:flex insulin delivery system that includes t:flex pump, its 480-unit disposable insulin cartridge, and an infusion set; and t:slim G4 insulin delivery system, a touch-screen pump with an integrated CGM system.

In addition, the company offers Tandem Device Updater, a PC and Mac-compatible Web-based system that allows users to update their pump’s software; t:connect diabetes management application, a cloud-based data management application, which provides a visual way to display therapy management data from the pump and supported blood glucose meters for users, their caregivers, and their healthcare providers; t:90 and t:30 infusion sets for use with its insulin pump products; and various pump accessories. Its products in development include t:slim X2 with G5 integration; automated insulin delivery systems; t:slim X2 with PLGS; t:slim X2 with TypeZero; and t:sport insulin delivery system.

The company was formerly known as Phluid Inc. and changed its name to Tandem Diabetes Care, Inc. in January 2008. Tandem Diabetes Care, Inc. was founded in 2006 and is headquartered in San Diego, California.

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According to company materials, “Tandem Diabetes Care, Inc. (www.tandemdiabetes.com) is a medical device company dedicated to improving the lives of people with diabetes through relentless innovation and revolutionary customer experience. The Company takes an innovative, user-centric approach to the design, development and commercialization of products for people with diabetes who use insulin. Tandem manufactures and sells the t:slim X2™ Insulin Pump, the only pump capable of remote feature updates using a personal computer, and the t:flex Insulin Pump, the first pump designed for people with greater insulin requirements. Tandem is based in San Diego, California.”

As discussed above, after a terrible past 12 months, we could possibly be seeing new life emerge in shares of TNDM after the company announced FDA approval and commercial launch of the t:slim X2 Insulin Pump.

“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,” said Kim Blickenstaff, president and CEO of Tandem Diabetes Care. “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.”

Now commanding a market cap of $42.7M, TNDM has just under $28M in cash on the books, which stands against a mountain of nearly $75M in total current liabilities. The company has pulled in $81.5M in trailing twelve month revenues but is seeing minor declines on the top line over the past year. We will update the story again soon as further details emerge. Sign-up for continuing coverage on shares of $TNDM stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: We hold no position in $TNDM, either long or short, and we have not been compensated for this article.


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