Insulin delivery and diabetes medical device maker Tandem Diabetes Care Inc. (TNDM:NASDAQ) reported financial results yesterday for the second quarter ending June 30, 2019, and updated its 2019 full-year guidance.
The firm led off by reporting that its worldwide shipments increased 290% to 21,258 pumps sold in Q2/19, up from 5,447 pumps in Q2/18. During the same period sales increased 173% to $93.3 million in Q2/19 versus $34.1 million in Q2/18 with operating margins improving to -2%, up from -41%.
The company indicated that domestic pump shipments increased 135% to 12,799 pumps in Q2/19 versus 5,447 pumps in Q2/18 with domestic sales increasing 106% to $70.4 million compared to $34.1 million in Q/18. International pump shipments were 8,459 in Q2/19 resulting in sales of $22.9 million. The firm noted that as international operations commenced in Q3/18 there were no comparable sales or shipments in Q2/18.
Gross profit for Q2/19 increased 231% to $49.9 million, compared to $15.1 million in Q2/18 with gross margin improving to 54% in Q2/19 compared to 44% in Q2/18.
The company reported an operating loss of $1.9 million in Q2/19, compared to $14.0 million in Q2/18 and a net loss of $1.5 million for Q2/19, which included a $0.4 million non-cash charge for the change in fair value of certain outstanding warrants. This compared to a net loss of $59.4 million in Q2/18, which included a $42.5 million non-cash charge for the change in fair value of certain warrants outstanding at that time.
Tandem's president and CEO John Sheridan announced, "We shipped more pumps in the first half of this year than we shipped in all of 2018...Approximately half of our new customers report being new to pump therapy, demonstrating that user-friendly technology drives adoption and that we are making progress in our longer-term goal to bring the benefits of pump therapy to more people with diabetes."
Leigh Vosseller, EVP and CFO added, "The record growth we achieved in the second quarter has continued to exceed our expectations...The acceleration of our sales growth drivers in recent quarters suggests that the longer-term goals we laid out a year ago may be attainable more quickly than originally anticipated, particularly with the strength of our near-term product pipeline, scaling renewal opportunity and expanding international launch."
For the year ending December 31, 2019, the company updated its financial guidance stating that sales are now estimated to be in the range of $350–365 million, which represents an annual sales growth of 90–99% compared to 2018. The company's prior sales guidance for 2019 was estimated to be in the range of $300–$315 million.
Based in San Diego, Calif., Tandem Diabetes Care defines itself as a medical device company dedicated to improving the lives of people with diabetes through relentless innovation and revolutionary customer experience. The firm states that it takes an innovative, user-centric approach to the design, development and commercialization of products for people with diabetes who use insulin. Tandem states its flagship product as the t:slim X2 insulin pump, which is capable of remote software updates using a personal computer and features integrated continuous glucose monitoring.
Tandem shares opened higher today at $67.00 (+$6.77, +11.24%) over yesterday's close of $60.23. Since the open shares have traded between $61.63 to $70.19. Presently, the company's shares are trading at $64.85 (+$4.62, +7.67%).[NLINSERT]
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