The 50,000 square foot plant doubles the company’s previous manufacturing capacity for insulin pumps and cartridges, Tandem reported, and expands its available warehousing for infusion set supplies.
Tandem’s new facility has two insulin pump production lines, four cartridge manufacturing lines and room to add two more cartridge lines. The company plans to relocate existing production equipment and personnel at its other San Diego facility to the new plant over the course of 30 days.
“The expanded production and operational capabilities of our new facility are strategically important to ensure we meet the increasing demand for our insulin pumps and supplies, particularly with a growing installed base of customers and new products on the horizon,” president & CEO Kim Blickenstaff said in prepared remarks.
“Our new facility is also designed to optimize our manufacturing processes and allow for greater operational efficiencies, which positions us well to achieve our long-term gross margin targets.”
In October last year, Tandem shareholders approved a 1-for-10 reverse stock split to help the company regain compliance with the Nasdaq market’s requirements.
TNDM shares were trading at $2.53 apiece in mid-afternoon activity, down -0.4%.