Tandem Diabetes Care's 2025 Q2 Earnings Call: Unpacking Contradictions in CMS Proposals, Pharmacy Strategies, and Renewal Growth

CMS proposal impact on business, pharmacy channel progress and impact, renewal growth and sustainability are the key contradictions discussed in Tandem Diabetes Care's latest 2025Q2 earnings call.



Record Sales and Growth:
- Tandem Diabetes reported record second quarter sales for the U.S. and internationally, with U.S. sales at $170 million, up 9% from the prior year.
- This growth was driven by increased pump shipments, including over 50% of pump shipments being renewals, and expanding market access strategies.

Multichannel Market Access:
- Tandem advanced its multichannel market access strategy, enhancing its pharmacy channel capabilities.
- Pharmacy volumes, though small, are expected to contribute significantly with approximately 30% of U.S. lives under coverage.
- The company plans to sell t:slim supplies through the pharmacy channel starting in Q4, diversifying its revenue streams.

International Expansion:
- Tandem's international sales reached $70 million in Q2, with strong performance attributed to increased pump renewals and supply sales.
- The company is preparing for direct sales in select countries next year, aiming to deepen relationships and strengthen its financial position.

Product Innovation and Development:
- Tandem submitted a new 510(k) for its Steadiset, aiming for extended wear time, and incorporated extended wear technology into the Mobi platform.
- These innovations are expected to enhance product versatility, particularly beneficial for type 2 diabetes users with greater insulin needs.