Tandem Diabetes Care Maps Growth Plan With Pharmacy Shift and Tubeless Mobi

Tandem Diabetes Care NASDAQ: TNDM highlighted its plans to expand insulin pump adoption through a shift to pharmacy distribution in the U.S., direct sales in additional international markets and upcoming product launches, including a tubeless version of its Tandem Mobi pump. Speaking at Canaccord’s 46th Annual Global Growth Conference, Chief Financial Officer Leigh Vosseller said the company sees substantial room for growth in an underpenetrated market. In the U.S., about 2 million people live with type 1 diabetes, with approximately 40% using pump therapy, she said. More than 2 million people with type 2 diabetes use insulin, while only about 5% use pumps, according to Vosseller. Outside the U.S., Tandem operates in about 25 markets that include roughly 3 million people with type 1 diabetes, where pump penetration is about 20%, she said. Tandem currently has about 500,000 people globally using its technology.

Vosseller identified the U.S. pharmacy conversion, regulatory clearance for tubeless Tandem Mobi and the transition from distributors to direct sales outside the U.S. as the company’s three principal near-term priorities. The company began its pay-as-you-go pharmacy model in March. Under that approach, Tandem said it can provide the pump at no cost and have patients pay for supplies over time, rather than face potentially higher upfront costs associated with the durable medical equipment, or DME, channel. “Cost has been one of the number one barriers to people starting pump therapy,” Vosseller said, noting that DME out-of-pocket costs can range from $800 to $1,000 or more for some patients. Tandem has reached about 45% formulary coverage for its pharmacy offering, Vosseller said. The company is working with pharmacy benefit managers, or PBMs, representing approximately 80% of covered lives, while also seeking to add payer participation to those arrangements. She described the early progress as strong but said the company remains focused on its two- to three-year goal of moving about 80% of its pumps through pharmacy channels. The transition requires educating physicians on new prescribing processes and helping existing users compare their pharmacy and DME benefit options, Vosseller said. Some patients may not see a compelling cost difference for supply orders or may be reluctant to alter an established process, she added.

Tandem filed its tubeless Mobi system with the Food and Drug Administration during the second quarter and is awaiting clearance, Vosseller said. Following clearance, the company expects to begin a scaled launch. She said the product could address a market segment in which Tandem has not historically competed. The company expects the system to offer up to seven days of wear time...