Tandem Diabetes Care (Nasdaq:TNDM) shares took a hit on second-quarter results that included amended full-year financial guidance.
Changes to the automated insulin delivery technology maker’s outlook reflect updates to its portfolio and reduced visibility on sales for the near future.
Shares of TNDM fell 15% to $27.19 apiece after the market closed today. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — closed the day down 0.8%.
Due to additions to its portfolios and expected disruption ahead, Tandem amended its guidance for 2023. At the end of the first quarter, the company projected GAAP revenues ranging between $885 million and $900 million.
It now expects non-GAAP sales to reach at least $785 million for the year ending Dec. 31, 2023.
“The upcoming addition of four new offerings to our portfolio sets a path for renewed momentum as we bring the benefits of Tandem technology to more people living with diabetes worldwide,” said Leigh Vosseller, Tandem EVP and CFO. “In the near term, we anticipate that our measured rate of market releases has the potential for disruption and reduced sales visibility. We are resetting our guidance to provide our minimum sales expectation for the remainder of the year, while focusing on driving the success of our new offerings and operational efficiencies across the business.”
The company also projects gross margin to reach approximately 51%, with adjusted EBITDA margin forecast to break even as a percent of sales. That includes a 3% impact from operating costs associated with the acquisitions of Capillary Biomedical and AMF Medical.
A look at the second-quarter results for Tandem Diabetes Care
The San Diego-based company posted losses of $35.8 million. That amounts to 55¢ per share on sales of $195.9 million for the three months ended June 30, 2023.
The company came up shy of Wall Street expectations as experts projected losses per share of 53¢ and sales of $197.4 million. Tandem recorded a more than $20 million bottom-line slide deeper into the red on a sales dip of 2.2%.
Despite the performance dips, Tandem increased its worldwide installed base by 16% compared to the second quarter of 2022. It now has approximately 437,000 in-warranty customers. Pump shipments declined, though, from 32,114 over the three-month period last year to 29,494 this year.
The company also launched its Tandem Source data management application and enrolled patients in a type 2 diabetes trial. Additionally, last month, the FDA cleared Tandem Mobi, the world’s smallest durable insulin delivery system.
“In the second quarter, we demonstrated exceptional progress with our new technology innovations, while driving operational improvements throughout our business and achieving sales expectations,” said John Sheridan, president and CEO. “We are navigating 2023 to position Tandem for future growth and long-term success by delivering on the most exciting portfolio in insulin therapy management while furthering our mission to offer choice and simplified solutions to improve the lives of people with diabetes.”