Tandem Diabetes Care (TNDM) Citi’s 2026 Unplugged MedTech and Life Sciences Access Day summary

Key business highlights

• Achieved record sales, shipments, and margins in Q4, with a notable expansion in gross margin to 58%.

• Commercial transformation included sales force expansion, new tools, and systems, leading to improved productivity.

• Launched new products: FreeStyle Libre 3 with t:slim, Mobi with Android, and began Type 2 sales force training.

• Shifted t:slim X2 supplies into the pharmacy channel, setting a baseline for 2026 growth.

• Positive free cash flow achieved in the back half of the year, supporting business model changes.

International (OUS) expansion and transition

• Transitioned to direct sales in Switzerland, Austria, and the UK, with more markets planned.

• Direct sales model increases ASP by at least 30% per market and brings closer customer engagement.

• OUS transition caused a $7M headwind in 2025, with $15M expected in 2026, mostly resolved by early 2027.

• Direct sales currently represent 15% of OUS sales, with significant growth potential.

• Focus remains on markets with strong reimbursement and business opportunity.

Product pipeline and innovation

• Rolling out FreeStyle Libre 3 and Mobi platforms internationally; Dexcom 15-day technology launching in the US.

• Preparing for FDA submission and commercial launch of the tubeless Mobi (Toby) in the second half of the year.

• Sigi technology integrated into Mobi, focusing on miniaturization and manufacturing scale.

• Exploring dual glucose-ketone CGM integration with Abbott partnership.

• Portfolio approach maintained, with ongoing evaluation based on market demand.