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Tandem Diabetes Care updates insulin pump with new CGM tech

EditorNatashya Angelica
Published 29/07/2024, 18:48
DXCM
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TNDM
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MARKHAM, Ontario - Tandem Diabetes Care, Inc. (NASDAQ:TNDM) and Dexcom, Inc. (NASDAQ:DXCM) have announced that the t:slim X2 insulin pump software now supports both Dexcom G7 and G6 Continuous Glucose Monitoring (CGM) Systems, following authorization for sale by Health Canada. This advancement marks the first insulin delivery system in Canada compatible with these two CGM technologies, offering users more options in managing their diabetes.

The t:slim X2 pump, equipped with Control-IQ technology, is recognized as the top-rated automated insulin delivery (AID) system in the country. The integration with Dexcom's CGMs is expected to enhance user experience by leveraging the accuracy of Dexcom's sensors to predict and adjust glucose levels.

Commercial availability of the updated t:slim X2 pumps is scheduled for this fall, and current in-warranty users will receive a free remote software update, while new customers will get pumps pre-loaded with the update.

The Control-IQ technology uses data from the Dexcom CGM to forecast glucose levels 30 minutes ahead, allowing automatic insulin adjustments to prevent high and low blood sugar levels. The t:slim X2 pump also features customizable settings for different activities and a variety of infusion sets for user convenience.

The integration of Dexcom G7, Dexcom's smallest and most accurate CGM, with the t:slim X2 pump is expected to offer benefits such as a reduced sensor warmup time, a grace period for sensor replacement, and increased connectivity with health apps.

The t:slim X2 pump with Dexcom G7 integration was previously launched in the United States in December 2023 and in additional countries in early 2024. Canadians interested in the Tandem insulin pump or learning more about Dexcom's CGM systems are encouraged to visit the respective company websites or consult their healthcare providers.

This update is based on a press release statement and aims to provide diabetes patients in Canada with innovative options for managing their condition.

In other recent news, DexCom , a medical device company, reported a 15.3% year-over-year increase in second-quarter earnings, reaching $1,004 million. However, this figure fell short of the projected $1,049 million, leading to several analyst firms adjusting their outlooks.

Baird downgraded DexCom's stock from Outperform to Neutral, while Piper Sandler, RBC Capital, UBS, and Canaccord Genuity all reduced their price targets. Despite these adjustments, all firms maintained positive ratings on the stock, citing potential for future growth.

In response to these developments, DexCom revised its full-year revenue guidance to 11% to 13% organic growth, with revenue expectations between $4.00 billion and $4.05 billion. The company also initiated a share repurchase program of up to $750 million and announced plans to launch its Stelo product to enhance its competitive position.

These measures are part of DexCom's response to challenges including disruptions in the sales force, a decrease in durable medical equipment market share, and changes in rebate pricing within the pharmacy channel.

Analysts from Piper Sandler, RBC Capital, UBS, and Canaccord Genuity remain optimistic about DexCom's long-term prospects, expecting the company to overcome its second-quarter performance issues and maintain strong growth rates. These recent developments are part of DexCom's ongoing efforts to navigate market shifts and competitive pressures.

InvestingPro Insights

As Tandem Diabetes Care and Dexcom collaborate to enhance diabetes management technology in Canada, investors are closely observing Dexcom's financial health and stock performance. According to real-time data from InvestingPro, Dexcom, Inc. (NASDAQ:DXCM) showcases a market capitalization of 25.65 billion USD, underlining its significant presence in the medical devices sector.

Dexcom's recent stock activity reflects a period of volatility, with the price per share taking a substantial hit over the last week. The stock is currently trading at 64 USD, which is near its 52-week low, indicating a potential entry point for investors. This aligns with an InvestingPro Tip that highlights the stock being in oversold territory, according to the Relative Strength Index (RSI), suggesting that the current market sentiment may have pushed the stock below its intrinsic value.

The company's financials further reveal a P/E ratio of 39.6, which, while on the higher end, is somewhat mitigated by a PEG ratio of 0.44 for the last twelve months as of Q2 2024, indicating that the stock may be more reasonably priced when factoring in its earnings growth rate. The revenue growth of 23.05% over the same period is also a strong sign of the company's business momentum.

For investors seeking more in-depth analysis, there are additional InvestingPro Tips available for Dexcom, including insights on earnings revisions, liquidity, and valuation multiples. Interested readers can unlock these valuable tips and more by visiting https://www.investing.com/pro/DXCM and using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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