Tandem Diabetes Care, Inc. Canaccord Genuity's 46th Annual Growth Conference

All right, thank you. Thanks for having us here today. I will just hit on a few of the highlights because I think we are going to dive deep into the really exciting parts with some of your questions, Bill. Starting with the market overall, it is a very large and highly under-penetrated market. To contextualize, in the U.S., there are about 2 million people living with type 1 diabetes, and only 40% of people use pump therapy today, meaning we have 60% of people that we can still attract with our technology. The type 2 diabetes population is more than 2 million people in the U.S., and only 5% of people are using pumps.

We do operate in about 25 markets around the world, and in those markets, there are about 3 million people living with type 1 diabetes and only about 20% of people using pump therapy today. So a lot of room for us to run. The way we expect to win in this market is, number one, with the best clinical outcomes, number two, with wearability. We define wearability by offering a portfolio of products. We know it is not a one-size-fits-all need for people in the population, and we want to make sure we are offering something that can fit multiple different needs. We have two different pump platforms, and we are excited to share that one of those pump platforms will be able to become our first tubeless option here in the very near future.

We will be expanding even further into another category where we are not playing very well today, or we are not actually competing. The last piece really that has been a barrier to pump adoption is affordability. Cost has been one of the number one barriers to people starting pump therapy. By design, the DME model makes it very expensive for people who want to start on pumps. It can be $800-$1,000 out of pocket, even more if they have not met their deductible. We have moved into the pharmacy channel, and we are setting up a reimbursement model that is a pay-as-you-go model. Therefore, the pump will be given away for free, and people will only pay for the supplies along the way. So it makes it a much different dynamic for people who want to start pump therapy but could not afford it in the past.

We have about 500,000 people around the world using our technology today, and we are excited. A number of drivers that we have this year and in the future with our rich pipeline. We are excited to talk to you a little bit more, Bill, about Tandem.

Got it worked out. All right.

Sure. Sure, and you called it challenging, I will call it exciting because it means we have multiple shots on goal. There is not just one way to win. As I mentioned earlier, it is about the best clinical outcomes, it is about wearability of the products, and it is about affordability. So we have a number of things underway, but I think in the first and second quarter even more so, we demonstrated great progress in all of those ways against our initiatives this year. So at the very moment, we have products in flight. We launched FreeStyle Libre 3 end of last year, Tandem Mobi coming into this year. But I think the three biggest areas of particular drivers would be the pharmacy conversion, it would be the impending clearance of Mobi tubeless, and it would be the direct transition outside the U.S.

I think those are the primary focus today. If you talk to anyone in the organization, that is where all of our attention is.