Tandem Diabetes Care (TNDM) TD Cowen 46th Annual Health Care Conference summary

Strategic transformation and business model evolution

• Shifted focus to monetizing the sales force, launching innovative products, and expanding market access via the pharmacy channel, with significant IT infrastructure investments to support direct operations in Europe and new country launches in 2025 and 2027.

• Introduced PAYGO (pay-as-you-go) model, offering pumps at $0 and supplies at $350/month, aiming to double reimbursement over four years and drive revenue and profitability growth.

• Transition to pharmacy channel is phased, with targeted marketing based on coverage, aiming for 20% of pumps and 10% of supplies through pharmacy in 2026, while 80% remains under DME.

• PAYGO model reduces patient and physician friction, improves access, and lessens reliance on upfront renewals, shifting revenue to recurring supply sales.

• Large installed base provides an advantage in converting customers to the new model, offsetting headwinds from pump giveaways.

Product innovation and pipeline

• Launched Control-IQ+, FreeStyle Libre 3 integration, and Android support for Mobi in 2025, with ongoing feature additions.

• Mobi Tubeless, featuring SteadiSet seven-day infusion technology, is set for second-half commercialization in 2026, offering extended wear and flexibility between tubed and tubeless use.

• Fully closed loop algorithm, developed with UVA, is entering pivotal studies in 2026, targeting commercial launch in late 2027 or early 2028, aiming to reduce patient burden and simplify use for both patients and primary care physicians.

• Continued focus on algorithm enhancements and a robust innovation pipeline, including a smaller Tubeless Mobi version in the future.

Sales force and market access

• Expanded and restructured sales force with new leadership and CRM systems, emphasizing data-driven productivity and automation.

• Pharmacy contracting efforts have resulted in 80% PBM coverage and one-third formulary coverage, with ongoing relationship-building and off-cycle negotiations to expand access.

• Sales force productivity expected to increase due to reduced administrative burden and automation, supporting 10-11% pump shipment growth in 2026, with more than half from renewals.