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t:slim X2's Compatibility With Lilly's Lyumjev Might Aid TNDM Stock

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Tandem Diabetes Care (TNDM - Free Report) has achieved a significant milestone by gaining approval for the use of its t:slim X2 insulin pump with Eli Lilly’s ultra-rapid acting insulin, Lyumjev, in the European Union (EU). The compatibility with Lyumjev offers new possibilities in the insulin delivery landscape, enhancing the efficacy of Tandem’s automated insulin delivery (AID) systems.

This latest development strengthens Tandem’s position in the diabetes technology market and enhances its offerings for individuals with diabetes, providing more flexibility and control in managing blood glucose levels.

TNDM Stock's Likely Trend Following the News

Following the development, TNDM shares dropped 4.6% to close at $42.41 yesterday. However, the company is gaining a high level of synergies from its efforts to expand its key product, t:slim X2 insulin pump. We expect the latest collaboration with Eli Lilly to drive market sentiment in favor of TNDM in the coming days.

TNDM Advancing Diabetes Technology With Ultra-Rapid Acting Insulin

The t:slim X2 insulin pump, equipped with Control-IQ AID technology, is recognized for its ability to improve diabetes management. By integrating ultra-rapid-acting insulin such as Lyumjev, which responds faster than traditional insulin, Tandem is enhancing the pump's functionality. This fast-response insulin allows quicker adjustments in blood glucose levels, leading to improved outcomes for users.

Clinical studies have shown that using Lyumjev with Control-IQ technology delivers high satisfaction and quality-of-life benefits, especially for individuals with Type 1 diabetes. This combination of technology and insulin is poised to reduce the burden of diabetes management in the EU.

European Expansion Supports Future Growth for Tandem

This approval in the EU builds on Tandem’s existing portfolio, which already includes compatibility with several other insulin types, such as Humalog and NovoRapid. Tandem’s collaboration with Eli Lilly highlights the company’s commitment to advancing diabetes technology and expanding global reach. Additionally, Tandem’s efforts to secure similar compatibility in other regions, as well as with its Tandem Mobi pump, indicate growth prospects.

Overall, Tandem’s latest development in the EU will help the company remain competitive in the rapidly evolving insulin delivery market while empowering diabetes patients with enhanced technology and treatment options.

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Market Prospects in Favor of TNDM

According to a Grand View Research report, the global insulin pump market, valued at $6.05 billion in 2023, is projected to witness a CAGR of 8.22% from 2024 to 2030. This growth is likely to be largely driven by technological innovations, including automated insulin delivery systems and artificial pancreas technology. The increasing prevalence of diabetes, fueled by aging, obesity, and unhealthy lifestyles, is significantly boosting the demand for insulin pumps.

In the near and long term, Tandem aims to strategically expand the adoption of the insulin pump by people with type 1 diabetes across all its markets. The Tandem team is actively working with its product launch and commercial strategy to progress in the type 2 diabetes space as well. In this line, enrollment in its Type 2 pivotal study, a randomized controlled trial, is now complete. The company is targeting an FDA filing by the end of 2024. This study used an enhanced version of Control-IQ, which is now FDA-cleared for people living with type 1 diabetes down to age 2 and offers greater settings personalization. During the second quarter, the company was clinically active with an extended wear infusion set trial effectively enrolling. It is expected to finish the study by the end of the year.

TNDM is making progress toward integrating Abbott's FreeStyle Libre 3 + sensor into the market, with an expected launch in 2025. It will start with t:slim X2 integration, both in the United States and outside the country, followed by integrations with Tandem Mobi. The company remains committed to developing a fully closed-loop AID system, which will continue to generate periodic feasibility studies around the globe, driving innovation.

TNDM's Share Comparison

Over the past three months, shares of Tandem have risen 8.3% compared with the industry’s 5.6% growth.

TNDM's Zacks Rank and Key Picks

Tandem Diabetes Care currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Boston Scientific (BSX - Free Report) , AxoGen (AXGN - Free Report) and Phibro Animal Health (PAHC - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Boston Scientific’s shares have risen 58.7% in the past year. Estimates for the company’s earnings per share have remained constant at $2.40 for 2024 and at $2.71 for 2025 in the past 30 days. BSX’s earnings beat estimates in the trailing four quarters, delivering an average surprise of 7.2%. In the last reported quarter, it posted an earnings surprise of 6.9%.

Estimates for AxoGen’s 2024 loss per share have remained constant at 1 cent in the past 30 days. Shares of the company have surged 180.6% in the past year compared with the industry’s growth of 22.7%. AXGN’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 96.5%. In the last reported quarter, it delivered an earnings surprise of 200%.

Estimates for Phibro Animal Health’s 2024 earnings per share have risen 0.7% in the past 30 days. Shares of the company have surged 76.6% in the past year compared with the industry’s 24.2% growth. PAHC’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, with the average surprise being 4.1%. In the last reported quarter, it delivered an earnings surprise of 20.6%.

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