Tandem Diabetes Pressured As Control-IQ Trials Combined; Raymond James Downgrades TNDM

Tandem Diabetes Care TNDM remained under pressure on Monday, after the company accounted for plans of a combined analysis of three trials of its Control-IQ technology.

Tandem Diabetes Care’s margins are likely to remain “depressed” in the near term, as the company funds its pipeline, according to Raymond James.

The Tandem Diabetes Care Analyst: Jayson Bedford downgraded the rating for Tandem Diabetes Care from Outperform to Market Perform.

The Tandem Diabetes Care Thesis: The company’s direct market share gains are likely to slow, following Medtronic PLC’s MDT earlier-than-expected 780G approval, Bedford said in a downgrade note.

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“The timing is unfortunate for TNDM, as it comes before G7 integration (mid-2023) and Mobi (late 2023), which will make the near-term selling environment more challenging,” the analyst added.

“We thought the pump market would grow faster, TNDM’s pipeline would be nearer-term, historical execution would be replicated, and valuation would provide a firmer floor,” Bedford further stated.

TNDM Price Action: Shares of Tandem Diabetes Care were up 0.35% to $37.61 at the time of publishing Monday.

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