By the numbers
31% growth year over year
Tandem Q3 gross profit: $124.7 million
Nearly 39% growth year over year
About 26% growth year over year
Insulet Q3 gross profit: $377.1 million
Nearly 29% growth year over year
Tandem Diabetes Care and Insulet executives this week touted the strong demand they’ve seen for their insulin pumps among people with Type 2 diabetes, tipping that adoption could be even greater than previously believed.
Tandem CEO John Sheridan said on an earnings call Wednesday that adoption of pumps among the roughly 2 million patients with insulin-intensive Type 2 diabetes in the U.S. is about 5%. Sheridan told investors that Tandem sees that figure growing to more than 25% over the next several years. Just a few quarters ago, the company was projecting a 15% longer-term adoption rate.
Interest in insulin pumps among people with Type 2 diabetes has made up a solid chunk of new users, helping to propel Tandem to a record quarter in sales.
“More than 30,000 people living in the U.S. with Type 2 use a Tandem pump,” Sheridan said. “If we look at it on a quarterly basis, approximately 5-10% of new customers each quarter have Type 2, which has been a consistent trend throughout the years.”
Tandem recently completed a clinical trial studying use of its Control IQ automated insulin delivery (AID) system for patients with Type 2 diabetes, Sheridan said, and the company plans to apply for market authorization with the FDA by the end of the year. FDA authorization for its AID system, which connects pumps and glucose sensors to deliver insulin when patients need it, could expand the indication for Tandem pumps to Type 2.
While Tandem does not yet have FDA authorization for Type 2 diabetes, Sheridan said doctors are prescribing the company’s Control IQ system and insulin pumps for patients to use off-label.
Insulet’s Type 2 lead
Insulet was similarly optimistic about the opportunity for the Type 2 market, and the Tandem rival has a head start in the space. In August, Insulet received Food and Drug Administration clearance for its Omnipod 5 pump for people with Type 2 diabetes.
On a Thursday earnings call, CEO Jim Hollingshead was bullish about future growth among users with Type 2 diabetes, and the chief executive was adamant that Insulet could maintain its lead in the space.
“We have a very, very clear right to win in the Type 2 space. … It’s very clear that we’re developing the market,” Hollingshead said when questioned about Tandem’s growth expectations. “We’re the ones who lead the market right now … and we’re very optimistic about growth in the space.”
While Insulet had the Type 2 clearance for just over a month in the third quarter, the expanded label still gave the company a solid lift in new customer starts. Hollingshead said Type 2 users represented more than 25% of new starts in the U.S. last quarter, adding that the “Type 2 indication significantly expands” Insulet’s total addressable market by making Omnipod 5 available to about 6 million people.
William Blair analysts wrote in a note to clients Thursday that “acceleration from here is likely” as Insulet’s Omnipod 5 pump is the only device cleared for Type 2 diabetes and as the company expands its salesforce during the fourth quarter and first half of 2025.
