Tandem Diabetes Care trading at 52-week high
Today, Tandem Diabetes Care (TNDM) opened~16.2% higher than yesterday’s closing price of $20.31, triggered by the news of FDA approval of its t:slim X2 insulin pump with Basal IQ technology yesterday after the market closed. The company’s stock rallied further and was trading at a 52-week high of $25.50 during the day.
Brief details of Tandem’s insulin pump with new technology
Tandem Diabetes Care’s recently approved t:slim X2 insulin pump features Basal IQ technology, which helps reduce the frequency and duration of the events characterized by low glucose levels with a “predictive low glucose suspend” feature. As per the company, its t:slim X2 insulin pump is the first automated insulin delivery system that can be used by children starting at six years of age.
Tandem’s t:slim X2 insulin pump is compatible with integrated CGM (continuous glucose monitoring) devices. However, the company plans to launch its automated insulin pump integrated with Dexcom (DXCM) G6 CGM. The launch is expected in August in the United States.
As per Tandem Diabetes, current users of the t:slim X2 insulin pump can add the new Basal IQ technology to their devices through a remote software update.
Wall Street views on the FDA approval
Following the news of the FDA approval, Oppenheimer analyst Steven Lichtman provided an update on its views on Tandem Diabetes today. As per the analyst, “Approval timing is in line, though compatibility with Dexcom’s new G6 sensor in the initial approval is upside to expectations; TNDM had assumed a staggered approval with G5 compatibility first, potentially followed shortly thereafter by iCGM designation/G6 compatibility. Earlier G6 approval bodes well for the initial launch later this summer.”
Oppenheimer has a target price of $24 on TNDM with an “outperform” rating. On June 18, Oppenheimer increased its target price for TNDM from $15 to $24. Oppenheimer also increased its target price on Tandem Diabetes from $9 to $20 on May 21.
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