Tandem Diabetes Care (TNDM) incurred selling, general, and administrative expenses of $20.9 million in Q1 2018 as compared with $22.8 million in Q1 2017. Employee-related expenses make up the bulk of Tandem’s SG&A expenses. This decrease in SG&A was driven by a $1.5 million decline in non-cash stock-based compensation and a 4% decrease in the company’s headcount.
The research and development expenses of the company, on the other hand, increased by almost 20% from $5.1 million in Q1 2017 to $6.0 million in Q1 2018. This increase was attributable to clinical trial costs associated with its t:slim X2 with basal IQ pump.
Due to the decrease in SG&A expenses, the total operating expenses of Tandem Diabetes Care decreased from $28.0 million in Q1 2017 to $26.9 million in Q1 2018, which further helped the company in reducing its operating loss to $15.5 million in Q1 2018 as compared with an operating loss of $21.2 million in Q1 2017.
Tandem Diabetes Care’s net other expenses, which consist of interest income, interest expenses, and changes in the fair value of stock warrants, increased from $2.6 million in Q1 2017 to $17.2 million in Q1 2018. Tandem’s interest expenses increased from $2.6 million in Q1 2017 to $3.1 million in Q1 2018. During Q1 2018, the company recorded a change of $14.2 million in the fair value of stock warrants.
Consequently, despite Tandem’s increase in revenues and better operational performance, the net loss of the company witnessed an increase from $23.8 million in Q1 2017 to $32.7 million in Q1 2018. The net loss per share of the company was $1.82 in Q1 2018 as compared with $7.46 in Q1 2017.
In the next part of the series, we’ll take a look at the cash flows of Tandem Diabetes Care.