Tandem Diabetes Care soars 32% after strong earnings and pharmacy model shift
Tandem Diabetes Care has announced robust financial results for its latest quarter, alongside plans to alter its pharmacy model. The company's sales surged by 3% to $290 million, while its stock price climbed over 32% in a single day. Investors reacted positively to both the earnings report and the shift toward a pay-as-you-go system for insulin pumps.
The company's fourth-quarter performance demonstrated clear growth. Sales reached $290 million, a 3% increase from the same period last year. Operating income also turned positive, hitting $8.3 million compared to a $0.6 million loss in the prior-year quarter. Gross margins improved as well, rising from 56% to 58%.
Tandem's outlook for 2026 remains optimistic. Full-year sales are projected between $1.065 billion and $1.085 billion, with gross margins expected to hold steady at 56% to 57%. The company also reported shipping 38,000 insulin pumps globally, including 27,000 within the U.S.
In a strategic move, Tandem is transitioning to a pay-as-you-go pharmacy model. This change aims to reduce upfront costs for customers while creating a more predictable revenue stream for the business. However, details on how this model will affect insulin pump accessibility outside the U.S. have not yet been disclosed.
The shift to a pay-as-you-go structure and the latest financial results have bolstered investor confidence. Tandem's stock surged by more than 32% following the announcement. With projected sales exceeding $1 billion by 2026, the company appears focused on expanding its market presence while improving affordability for users.
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