Tandem Diabetes at Jefferies: Expanding Market Horizons

On Wednesday, 04 June 2025, Tandem Diabetes Care (NASDAQ:TNDM) presented at the Jefferies Global Healthcare Conference 2025, sharing insights into its strategic direction. The company highlighted its progress beyond traditional insulin pumps, focusing on integrated technology and market expansion. While optimistic about growth, Tandem acknowledged challenges such as potential macroeconomic uncertainties.

Key Takeaways

• Tandem targets a 60% gross margin by the end of 2026, driven by new products and efficiency gains.
• Mobi’s introduction has significantly increased new pump starts, especially among MDI users.
• The company plans to expand direct operations in select European markets starting in 2026.
• Pharmacy channel penetration is a key focus, with Mobi already having significant coverage.
• Tandem aims for double-digit revenue growth through innovation and market penetration.

Financial Results

• Gross margin target: 65% long-term goal
• Expected gross margin: 60% by the end of 2026
• Mobi is a major contributor towards achieving the 65% margin target
• Record Q1 revenue in both US and international markets
• International operations currently have a modest impact on gross margins

Operational Updates

• Mobi has been on the market for over a year, with an Android version expected by year-end
• Expansion plans for Mobi outside the US are underway
• Direct operations in select European markets to begin in 2026, with infrastructure development starting in 2025
• US sales force expansion nearly complete by the end of 2024
• Approximately 30% of US lives are covered under pharmacy agreements for Mobi

Future Outlook

• Double-digit revenue growth is anticipated in the coming years
• Type 1 diabetes market penetration expected to increase from 40% to 60-65%
• Type 2 diabetes penetration could rise from 5% to 25%
• Pharmacy channel penetration is projected to take 3-5 years for broad coverage
• Long-term goal of achieving 65% gross margins or higher

Q&A Highlights

• Type 2 diabetes market approval has significantly expanded Tandem’s market reach
• MDI starts have shown double-digit growth for four consecutive quarters, driven by Mobi
• Increase in new prescribers to Tandem’s portfolio post-Mobi launch
• Control IQ Plus study results to demonstrate benefits with GLP-1s and extended approval for Type 2 diabetes from age two
• Testing of new reimbursement models in the pharmacy channel to potentially reduce out-of-pocket costs

Readers are encouraged to refer to the full transcript for more detailed insights.

Full transcript - Jefferies Global Healthcare Conference 2025:

Unidentified speaker, Moderator: So thanks a lot for joining us for this session here with Tandem Diabetes. We have Lee Vosler, the CFO, and Katie from Investor Relations. We’re going to have about a half hour for moderated Q and A. Lee, I wanted to just kick things off with a good old high level question. So maybe we could just talk a little bit about how Tandem’s evolving because you have gone from being a tube pump maker to one that’s now integrating with a lot of technologies, having a software ecosystem around that pump and now with a pipeline.

And it would be helpful to understand kind of where we are in that river and what you’re excited about next.

Lee Vosler, CFO, Tandem Diabetes: Sure. Thanks for having us here today. It is an exciting time for us and you just listed off a lot of really interesting things that are growth drivers for the business. But I’ll add some more unique factors because we’ve been driving the business up to now very focused on new product introduction and how we meet the needs of people who have not yet chosen pump therapy. But there are two other ways we now have the opportunity to drive the business and drive revenue growth in the future that we’re really excited about.

One is when you think about the market size itself. We’ve been very focused on the Type one community, but now with the expansion of the indication to Type two that more than double our market size in The U. S. And then the other piece that I would add is the pharmacy opportunity. So you take that, it’s almost like a layer over these opportunities.

It can be an accelerator as we think about penetrating more into the pharmacy channel and can really benefit from a margin perspective and a revenue growth perspective. But we’re excited where we are today. As you said, there’s a number of really exciting products for us. We have really evolved in terms of our offerings. And when I mentioned the needs of people who haven’t chose pump therapy before, that is what’s behind all of the market research to get us to this portfolio of products that we’re working on to deliver here in the coming years.

Unidentified speaker, Moderator: Great. So I want to take a few of those in turn and talk a little bit more about some of these drivers. The first one maybe we’ll start with type two. We’d love to hear more about how you think that’s going to evolve. You’re there now with Tandem and Pod having both gotten approval over the last six months and it seems like there’s a lot of room for therapy penetration to increase there.

So you give us some thoughts on where that penetration could go and how long it’s gonna take to achieve that?

Katie, Investor Relations, Tandem Diabetes: Absolutely. So type two is going to drive meaningful value to us. As Lee mentioned, it doubles, more than doubles our current served available market. And with recent approval, you know, we really feel like we are ready to hit the ground running, offering our technology and our ability to reduce the burden of diabetes. When we look at our market, we’re really focused on insulin intensive individuals because we believe that that is where we can make a big impact.

We are approved for all type two, but we’re starting a pilot where we’re really going in and making sure that we’ve got the right training, the right strategy, the right messaging to offer our portfolio of products. So we are able to offer both t slim and Mobi. Both products, you know, have great benefits where t slim, we have 300 units reservoir of insulin that we’re able to offer which can really be attractive to our type two customers. And then with Mobi, we offer more discretion, smaller form factor. So we feel like we’ve got a great opportunity to come and to compete with our portfolio of products.

And with penetration, as you mentioned, it’s a tremendous opportunity for us. With type one, we’ve seen penetration rates increase throughout the year. With type two, we’re currently at around five percent penetration. And we really think that as we continue to innovate, as we continue to have the right products, we’re gonna be able to see that penetration increase throughout the years. And I wouldn’t say, you know, we we know 25%, that doesn’t have to be a ceiling, but we see, you know, a pathway to get there.

Unidentified speaker, Moderator: Great. I’m glad you mentioned Mobi. I wanted to touch on that too. Could you talk a little bit about the momentum that you’re seeing with Mobi and maybe highlight some of the recent trends with Mobi and how it’s driving more MDI conversion?

Lee Vosler, CFO, Tandem Diabetes: Sure. So Mobi, as I mentioned earlier, was designed for the needs of people that we aren’t meeting today. There’s still a healthy audience for X2, but there’s also a new population of people choosing Mobi that we weren’t attracting before. It’s been very successful in the pediatric population. I think size is a big factor there.

We’ve seen it be very competitive with the patch offerings. I think also the size comparison in that regard. And so it’s we actually it was first full quarter on the market was just a year ago, a second quarter of last year. So we’re still driving that momentum this year. We look forward to offering Mobi with Android by the end of this year and starting to roll it out in the markets outside The U.

S. But it’s really making a difference for us. Once we launched Mobi, we returned to growth in new pump starts, particularly with the MDI population. It is bringing more people over than what we had seen in the past. And so we saw double digit growth in MDI starts each of the last four quarters, and we do attribute that to Mobi’s strength and it’s the receptivity it’s getting in the market.

I think I’ll add one last piece too. We saw a notable increase in new prescribers to Tandem. So these were people who hadn’t prescribed a Tandem pump ever before. They started prescribing Mobi and also started prescribing X2. And so it also says something about the portfolio offering.

When you bring something new, you bring awareness to Tandem. So whether or not they choose Mobi or t slim doesn’t really matter to us. It’s the fact that they come into the Tandem family. And so Mobi’s attracting awareness in a way that we weren’t able to before.

Unidentified speaker, Moderator: Got it. Maybe we’ll stay on the pipeline for a second and I know we have coming around the bend at some point Toby and Siggy. You have stopped giving disclosure on the exact time frame, but could you talk about when we might be able to see those and what they could do incrementally on top of Mobi?

Katie, Investor Relations, Tandem Diabetes: Well, I’ll start. I mean, with Mobi, it really has longevity. We’re just getting started. So we have launched for a year. We started just with g six, moved to g seven, and we continue to add additional innovation and additional integration.

So we’re excited that we’re going to be able to offer Libre three plus shortly here. That’s gonna open up additional areas of the market. And we think that you were also gonna continue to evolve Mobi with our tubeless functionality. So that will enable even more choice and even more optionality where we can allow our customers to choose how do they wanna wear their pump for a particular day. They could have the traditional Mobi or they could use it as a patch pump.

And it is the same device. It’s Mobi. It’s really just the consumable that’s changing. So it’s an important development within that one pump platform. And if you look at timeline, we’re really focused on, you know, the evolution of Mobi right now and we’re also very excited for Siggi, but in time you would think first we’d focus on the tube less functionality of Mobi and then moving on to SIGI.

Unidentified speaker, Moderator: I was curious to just with ADA coming up and and the pipeline we’re talking about here. Anything that investors should look out for at ADA? Any any data or pipeline updates that we might see?

Katie, Investor Relations, Tandem Diabetes: I think what’s exciting is we’re gonna share more about our Control IQ study, Control IQ Plus. And with that, we were able to one, be able to extend our approval for type two, also expand the indication for type two for two ages two and above. And we were also able to demonstrate, you know, tremendous outcomes if you are number one carb counting and also if you are, doing fixed dosing. So I think that that’s an interesting conversation related to ease of use and the ability again going back to the choice that we offer, you know, for more hands on discipline management, we can offer that. For more ability to have a little more hands off, more of you know fixed dosing, we’re able to do that as well.

So we’ll talk about that a little bit more and also just the positive benefits that we’re also seeing combined with GLP ones. So more related to that study should be shown.

Unidentified speaker, Moderator: Okay. Great. I wanted to pivot and talk about kind of a new hot topic in margins. So the first thing I’ll ask is on the last call for the first time kind of pulled forward the potential for gross margins to expand. You talked about 60% sometime in 2026.

So not really clear if that’s the full year or exiting 2026. But maybe you could talk about that and what are the key elements for you to get there from kind of the ’51 where you were in Q1?

Lee Vosler, CFO, Tandem Diabetes: Sure. So maybe I’ll start with framing up the long term goal. So we still we have still have a long term goal of 65% gross margins. Originally, we had correlated that to about 1,000,000 customers in our installed base. And so people were having trouble seeing that line, like when does that come, how far away is that.

And a few of the big contributing factors are new product introductions, Mobi in particular is expected to get us more than halfway to that gross margin target. Also other new product introductions coming, everything is being designed with the thesis that it should have a lower cost profile than existing products on the market today. We also layer in manufacturing efficiencies, but the last piece of this, which I think is very pivotal that we haven’t talked much about would be our reimbursement strategies. And so pharmacy is playing a big role in this now with Mobi just being introduced into the pharmacy channel. So what we wanted to do is help people understand what is the line of sight to 65%.

With the combination of the traction we’re seeing in Mobi today with its lower cost profile as well as the pharmacy early learnings. And I say early learnings, we had very low volumes in the first quarter, but what they did was provide us with a number of proof points to give us the confidence that what can deliver for us in the long term. And with that in combination, we see a line of sight to a 60% gross margin as early as 2026. And I would say, maybe the way to think about it initially is as an exit rate. So by the end of the year, we should be able in the fourth quarter to get there.

The ability to achieve that earlier will depend on how much more traction we get with Mobi and how much more we can accelerate into pharmacy. But at this point, we thought that was a very useful milestone for people to understand. And I think maybe a surprise to many. And so it’s something important for us. We wanted to get out there.

Unidentified speaker, Moderator: Great. I know you haven’t updated this but conceptually the 65 long term goal before, I don’t think it had a lot of this pharmacy goodness in it. So is it possible that you could actually get to a higher number over time?

Lee Vosler, CFO, Tandem Diabetes: I would say that it’s never a ceiling on what our ambitions are. What the pharmacy channel does for us is it secures us getting there and actually accelerating the pathway to it. And so we’ll continue to push on that and let us get to 65% and then we’ll talk about our next target.

Unidentified speaker, Moderator: Very good. You’re also going through some transitions with the sales force and your go to market model in Europe. And so I just wanted to ask about that first as it relates to the margins. Meaning as you’re going direct next year in Europe, how much does that help with gross and operating margins?

Lee Vosler, CFO, Tandem Diabetes: Yes. So that is a contributor. So just to explain what’s happening is we are in about 25 countries globally, of which we’re only direct in The US and in Canada. So what we’re starting to do in some of the other markets, there’s a few select markets that we plan to set up direct operations beginning as early as 2026. And what that means is in 2025, we’re building that infrastructure that we need.

So think about putting in CRM systems, general ledger instances, building out the sales team, building out the customer support infrastructure. So all of that legwork is being done now so we can go direct on one one. What that means for us in the long term, it’s a great opportunity for us as a business. We feel like by going direct in those markets, we have more control over the ability to drive growth there. We see such a significant opportunity outside The U.

S. In The U. S, the Type one penetration is around 40% and has been improving over the last few years. In the markets where we operate outside The U. S, the penetration rate is still below 20.

So we believe as we get closer to the physicians and the customers ourselves, we’ll be able to drive that penetration further. But what you also suggested, which is true, is we see it as a profit opportunity. So today, because our distributors take on so much of those customer interactions, we give up a piece of margin in order for them to sustain their businesses. As we take it on, it’s a margin improvement opportunity for us, also factored into hitting the 65% gross margin target. We haven’t yet shared the magnitude of that impact, but as we go ahead, we’ll give more color in the future.

What we’ve said in the past is that our international operations have a modest impact on our gross margins today. So you can think of that as a modest benefit going forward.

Unidentified speaker, Moderator: Okay, great. And then maybe we could talk a little bit more about pharmacy. So I know the way that you’ve been talking about it now, it’s kind of like you’re testing the waters. You wanted to get these proof points. You’ve now gotten those.

And previously, you had always been saying we’re kind of laying the groundwork for SIGI. Is that still the way to think about it? Or do you think now pharmacy could become a more material piece of your business before SIGI?

Lee Vosler, CFO, Tandem Diabetes: Yeah. It’s a great question. So the strategy that we set out to to accomplish was this, was keep t:slim in the DME channel. It’s very consolidated, consistent, we understand pricing, we understand the inner workings, it’s not broken, don’t fix it. With Mobi we wanted to take the opportunity to pilot or step into pharmacy.

And one of the very first questions we had to answer was will a durable pump product be accepted into the pharmacy channel? And so that was one of the proof points that we needed and I think we proved that in a pretty big way now because in with Mobi, we have about thirty percent of lives in The U. S. Covered under pharmacy agreements. And then the long term goal ultimately was when SIGI launches to take it directly into the pharmacy channel.

So that is still the strategy at this point, but as we get more learnings, it allows us to consider and reconsider whether or not we want to pivot in any way, shape, or form. And so with the large amount of coverage that we have, can we get to full coverage faster with Mobi? What does that mean for the business overall? And other proof points that we measured in the first quarter, we wanted to see first secondly after the coverage piece was what does reimbursement look like? And what does and more importantly, the business model look like.

Many people believe that if you’re in the pharmacy channel, it has to be a subscription like model. It doesn’t. So the contracts that we have in place today very much mirror our DME contracts, but we do see profit opportunity there. There’s a different value placed in that part of the payer world on clinical data and information, which we have mounds of with Control IQ and even more so now with Control IQ Plus. So there’s the ability to see improvement in the revenue per patient as we look ahead.

And so those are the main things that we were looking at. I I wanna add the third piece is really the out of pocket cost for the patient. So this is another very important piece to the pharmacy channel. So even if it didn’t have uplift on a price perspective, one of the biggest objections that we face with customers is that durable pumps seem expensive. It’s that first out of pocket cost when they buy the pump.

And so in the pharmacy channel, the way we structure the contracts and with the copay assistance that’s available for that channel, we’re able to influence what out of pocket costs look like. And so some of the things that we saw in the first quarter that is was really as we test claims through that channel, we wanted to see what does a patient’s responsibility look like with and without copay assistance. We saw a wide range, so this is not representative of a full sample by any means, but we saw some people with zero out of pocket. We saw some people with thousands of dollars, but what that does is helps us test how we might deploy co pay assistance, how we might negotiate future contracts. And so far, it gave us a lot of confidence in what pharmacy can do for our business and it gave us a lot of excitement.

And in fact, if you ask me today what one of the biggest opportunities is for Tandem, I think it is to continue the penetration in the pharmacy channel.

Unidentified speaker, Moderator: Got it. Now still early, mean, maybe I’d ask you to make some kind of prediction on what percentage of your business the pharmacy could represent in five years, sort of over the investable horizon. Could it be the majority or do you think it would be kind of a strong minority, it would be more likely based on what you know today?

Lee Vosler, CFO, Tandem Diabetes: Yeah, so what we’ve seen as other people have transitioned in the pharmacy channel, first of all, is it takes three to five years to get to that broad coverage point. And so considering we’re doing this with Mobi and T cells separate, we’ll have to see what that might look like in a couple of years. But as we learn more, we’ll give more color. But I think what you heard was even without pharmacy as a majority of the business next year, it can have a meaningful benefit to gross margins. When you couple that with the cost benefit on the Mobi product itself and the lower manufacturing cost.

Unidentified speaker, Moderator: Got you. Now, I guess with all this innovation happening, I know you get asked this a lot, but are you seeing the market already accelerating or do you think it will accelerate through the next couple years because of type two, the innovation that you’re bringing, the integrations? And a lot of your competitors are also innovating it as well. So it’s just better products all around and more access.

Lee Vosler, CFO, Tandem Diabetes: Yes. We’ve always believed, I think, and demonstrated that innovation drives adoption. It definitely moves the needle in terms of penetration. I think what we witnessed in the first quarter, not necessarily a trend, but we saw strength in the market overall. We participated in a nice way in that growth.

And we believe with what we’re delivering to the market, we will be we can be a market leader in terms of that MDI conversion to pump therapy. And so we would expect the market will continue to grow, the penetration rates will move up. Katie talked about what we think that can do in the type two population. In the type one population, we think it can move from 40% upwards to sixty, sixty five percent. So there’s a lot of room for growth as a business in the future.

And and again, we feel like our pipeline is going to help us deliver on that.

Unidentified speaker, Moderator: Gotcha. You highlighted Android. I didn’t know if you thought that was actually a material driver, but maybe put that in context. Do you expect that to be an accelerant when you have phone control on Android system? And how important is that relative to, let’s say, the Abbott integration?

Lee Vosler, CFO, Tandem Diabetes: Yeah. I would I would call Mobi Android an enabler. It’s about rounding out the Mobi offering. So that when you’re out talking to a customer, you don’t have to say, this product has this, this product doesn’t have that. And so it’s about making sure it’s it’s the full suite of benefits that someone can get from that platform.

We’ve seen that iOS users are a bigger part of our base, but we do want to make sure that we’re able to serve all customers. And so it’s an important driver for us. I would probably put the FreeStyle Libre three integration higher or above that in terms of opportunity for both t:slim and Mobi. There’s a sizable population of Abbott type one users in The US that are limited from having integration with pump therapy. And so we look forward to partnering with Abbott in order to deliver on that combined innovation so that we can bring more people to pump therapy.

So we see it as a very meaningful opportunity for the business. All of these though are not I wouldn’t expect that they would be overnight sensations or immediate inflections. They will all build over time on each other. And I think they will drive long term growth trends for us, especially as we think about our commitment to driving double digit revenue growth in the coming years.

Unidentified speaker, Moderator: Got it. Okay. A couple of things we haven’t talked about yet are your sales force expansion in The U. S. So maybe we could talk about how that’s progressing.

Could you frame kind of how big of a progression that is and are you getting the results that you wanted there?

Katie, Investor Relations, Tandem Diabetes: Sure. And I’d add, you know, as we look at market penetration and market awareness, this is an important part of our strategy to make sure that, we have the people on the ground where we’re increasing our market awareness, our footprint out there. And we announced it recently, but this has been something that we’ve been looking at for a period of time. We have new commercial leadership that has been very data driven looking at how do we ensure that we’ve got the right level for expansion, how do we make sure we arm them with the right data, and how do we make sure that our physicians that are prescribing high levels of insulin have high touch points with our sales force. So it’s been something that we’ve been looking at.

We had most of the hiring complete exiting 2024. Q1 really hit the ground running. And within our guidance for ’25, we have incorporated the fact that there could be potential disruption. But I think that when you look at our Q1 performance, you know, we we are seeing things as expected. Q one revenue was record for US and o US Q One.

We’re tracking as expected. And throughout the year, we’ll see productivity improve. The way we look at it is it might take nine to twelve months for a sales rep to really get to full productivity and that’s why you’ll see as we go throughout the year, it may be a little bit more back end loaded, but we feel like it’s on track and will add value to the business.

Unidentified speaker, Moderator: Great. And let you brought q one was a nice beat, a nice result, and yet you maintained the the guidance. So I wanted to ask you about how much of that is just conservatism? Is it early in the year and you didn’t want to raise yet? Or are there other headwinds that you’re worried about?

Lee Vosler, CFO, Tandem Diabetes: Sure. So when we we were very excited to report that performance by the way. And but when we looked at the building blocks for the business, we didn’t have any change in thoughts around our assumptions for what we put together to build the guidance. So it always starts with supplies and our large installed base, and we’re seeing great retention there. It next is coupled with renewals where we have very consistent track records in terms of people when they fall out of warranty, when they buy their next pump.

And then there there are risks and opportunities more so usually fall on the MDI or on the MDI or the new start population. Nothing changed about what we are seeing in the business or what we think we can deliver on. What is happening is there’s more turmoil, I would say, in the macro environment, things I would say that are more outside of our control. And turmoil might be the wrong word. It’s not to say that we see it happening, but it’s the the risk that it could occur.

Just a lot of changes in the environment. And so we wanted to be thoughtful about how anything may impact the business and so we thought it was prudent at this time even with the beat to just hold where we were and just continue to execute and demonstrate what we can deliver on.

Unidentified speaker, Moderator: And let me just ask you about guidance philosophy because for a while there you were sort of taking a more conservative approach. Is that still the case or are we gonna evolve further to, I’ll call it more sort of down the fairway guidance?

Lee Vosler, CFO, Tandem Diabetes: Yeah. It’s good question. So I would I don’t know that I would describe us as conservative or down the middle or any way you wanna say it. What I would say is we look at the risks and opportunities and we weight those. And I I would say in some situations, the opportunities came in better than we expected or overachieved or exceeded.

And in some case, the risks really came to fruition. And so it’s been an interesting environment. It’s highly competitive in the market. A lot of changes have been occurring in the last two years in particular. I think we have performed relatively well.

And with our new with the pipeline that we’re delivering on, I think we’re well positioned for the future. So I would say it’s just a matter of what weight we put to those risks and opportunities. So it’s a similar approach but the environment changes each time as we reevaluate.

Unidentified speaker, Moderator: Gotcha. Maybe I could ask you a couple about competitions. There’s been some changes in the environment. The first one would be any thoughts that you had about Medtronic spinning their business. Do you think that changes the competitive dynamic at all?

Lee Vosler, CFO, Tandem Diabetes: You know, it’s really hard to say how this will play out. I don’t think it will make a difference at all when we’re out in the field talking to physicians patients in terms of our ability to compete there. And we’ve always competed very well against them, and in fact, we’re very successful in the MDI population. They’ve been a donor, if you would say that, in the past in terms of renewal opportunities, but that has been declining over time as in line with our expectations. And so we’ll just keep a watchful eye.

I think it can always be disruptive for an organization as they’re going through a significant change. And so we’re gonna continue to just focus on selling the, you know, the merits of our products and hopefully driving far ahead of them.

Unidentified speaker, Moderator: And the other follow-up I would have is you have SIGI which you’ve been working on for a while. It seems like you’re optimistic about potentially accelerating that timeline by bringing some of the development into California. So I was hoping that you could elucidate that a bit more. Then I guess looking forward a year or two, you may have two or three patch pumps coming into the market at the same time. So I was hoping you could illustrate what you think your ability will be to compete differentially with Ziggy.

What do think is really unique about it and about Tandem behind that?

Lee Vosler, CFO, Tandem Diabetes: Yeah. Maybe I’ll start Katie if and then if you wanna chime in. So first just talk a little bit about what we did and the why and what benefit we get from it. So we did reorganize our teams where everything was centered in Switzerland where the company was originally acquired. We now have opportunities in San Diego as as Mobi has is moving up the scale in terms of it’s maturity is the wrong word, but it’s it’s out there and now we’re adding more features, not wholesale changes to it.

It means we have a team in San Diego with a great deal of expertise on delivering on hardware platforms. And so what we thought should happen is it made a lot of sense to combine the talent on those teams and leverage the efficiencies we can get from that. So to really secure the delivery of an excellent product in SIGI. So we look forward to continue to drive. It’s one of our number one priorities, tubeless benefits that come from SIGI.

But remember, we have tubeless Mobi in the meantime, which is our bridge. And so we’ll have our tubeless innovation will first come with Mobi earlier than SIGI, but we’re still very excited about the ability to deliver on that as we’ve discussed in the past. And if you want

Katie, Investor Relations, Tandem Diabetes: to take I think I would just add that our strategy is to offer a portfolio of products and we think that we want to meet our customers where they are and we realize that it’s very individual in their choice. So being able to offer both t slim and Mobi and ultimately Sigi, we still think that there’s a market interest in all of those platforms and that is what we are looking for to be the option of choice and optionality.

Unidentified speaker, Moderator: Super. We’ve a couple minutes left. I did have one follow-up on Siggy. I mean, in the past you talked about this choice to make a durable component to the patch. And I know you did market research and so I’d love to hear a little bit more about that.

But one thing I was wondering was just the design for manufacturability because seemingly you’re only replacing the cartridge that could drive a lot of efficiency. And I was also curious, I don’t think you’ve commented much on this, but how how would we you view the kinda ease of use for the patient versus the other options that are out there today?

Lee Vosler, CFO, Tandem Diabetes: Yes. So I’ll start with the design for a a manufacturability piece. So it it was an important element as we evaluated on body offerings. We looked at what’s out there today versus the durable pump that we have. And one of the greatest features of a durable pump is that it is detachable.

And so you find that people want to be able to remove it at their leisure over the course of a three day cycle before they change their cartridge. So we wanted to keep that incorporated plus it’s a major sustainability initiative for us. So there’s not that disposal of all those electronic components every three days. And so that was an important part of how we thought about that the patch pump or on body type evolution was that detachability. It also from a cost perspective is from a manufacture the investment for manufacturing equipment is far lower with this design than it would be if it were a full on body disposable offering.

And so that played into the economics of the choices that we were making in terms of the design for this product.

Unidentified speaker, Moderator: Great.

Lee Vosler, CFO, Tandem Diabetes: From the patient perspective, I think was the

Unidentified speaker, Moderator: last one. The last one, yeah. Was sort of an easy use benefit.

Lee Vosler, CFO, Tandem Diabetes: Yes. And so SIGI is first of all, it’s just the size. It’s the discretion that comes with it. It’s very simple to remove. It’s very simple to change the cartridge.

And so while Mobi is simpler and easier to use than t:slim to some extent, SIGI, again, is being designed to meet those same requirements for a patient. It has a prefilled cartridge capability which also means they don’t even have to fill the cartridge and so that’s also got some benefits to it as well from the customer perspective.

Unidentified speaker, Moderator: Great, one minute left. Maybe I’ll just round this out by asking it seems like the company had some real momentum now and some good things coming in the pipeline and on the margin side. I’m wondering in investor conversations that you have, what do you feel like is underappreciated about the story and how is the tenor of those conversations been since the Q1?

Lee Vosler, CFO, Tandem Diabetes: Yeah, you know, I think the most underappreciated part of our story honestly has been the pharmacy opportunity. I feel like the conversations around that have changed in more positive way where people are starting to appreciate what it can do for the business. I mean, everyone is always complimented us on our products. Everyone always says, we know hands down your algorithm is the best. And I think we’ve been one of the most consistent in delivering on new innovations and I think the portfolio approach has resonated.

What people want to see is something more near term that not only drives revenue, but also demonstrates profitability. And I think pharmacy is the last little piece to plug in to give people the confidence in our ability to grow sustainably and efficiently.

Unidentified speaker, Moderator: Super. Well, I think that’s a great way to wrap it up. Thanks so much, Lee.

Lee Vosler, CFO, Tandem Diabetes: Thank you.

Unidentified speaker, Moderator: Thanks a lot.

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