Tandem Diabetes Care, Inc. ( TNDM Quick Quote TNDM - Free Report) recently announced the publication of favorable study outcomes from the Protocol 5 study (DCLP5) of the International Diabetes Closed Loop (iDCL) trial in the New England Journal of Medicine (NEJM). Notably, the DCLP5 study was the first-ever large-scale closed-loop pediatric study that included a dedicated control group.
The study results demonstrated that Tandem Diabetes’ t:slim X2 insulin pump with Control-IQ advanced hybrid closed-loop technology, when used in children aged six to 13 years, produces positive outcomes. The usage illustrated increased time spent in range (70-180 mg/dL) and less hyperglycemia (high blood glucose) in children of the mentioned age group.
For investors’ note, the t:slim X2 insulin pump with Control-IQ technology (originally approved for children aged 14 and older) was cleared by the FDA for use in children aged six and older in June 2020. The pump with Control-IQ technology was also recently launched in select geographies outside the United States.
The latest encouraging study results are expected to help Tandem Diabetes strengthen its global insulin pump business.
Significance of the Study Outcome
Per the medical fraternity associated with the study, the positive study outcome is a major achievement as the school-aged children with type 1 diabetes often struggle with diabetes management for various reasons. The Control-IQ technology-enabled insulin pump proved to be easy to use for children and their parents, leading to better glucose control, both during the day and night.
The Control-IQ technology-enabled t:slim X2 insulin pump, which was successful in adolescents and adults in the previous DCLP3 study, was observed to benefit children as well and to the same extent.
For investors’ note, the t:slim X2 insulin pump with Control-IQ technology uses Dexcom G6 continuous glucose monitoring (“CGM”) sensor values to predict glucose levels 30 minutes ahead and adjust insulin delivery to help prevent fluctuations. At the same time, it allows the user to manually bolus for meals. The system also delivers automatic correction boluses, which is a first for any commercial automated insulin delivery system.
Industry Prospects Per a report by Grand View Research, the global insulin pump market was valued at $3.30 billion in 2018 and is projected to see a CAGR of 9.6% between 2019 and 2026. Factors like rising technological advancement, increasing incidence of diabetes and greater adoption of insulin pumps over traditional methods are expected to drive the market.
Given the market potential, the positive study results are expected to boost the company’s business.
Of late, Tandem Diabetes has been witnessing a slew of developments.
The company, in July, entered into a non-exclusive patent cross-license agreement with Medtronic plc (
MDT Quick Quote MDT - Free Report) for certain technologies in the field of diabetes. The same month, Tandem Diabetes announced a new national partnership with JDRF (a global organization funding type 1 diabetes research) to help drive awareness and education on topics related to technology innovation, diabetes management and healthcare for diabetics.
The company, in June, announced that the finalization of its diabetes care deal (proposed in October 2019) with Abbott Laboratories (
ABT Quick Quote ABT - Free Report) will enable companies to integrate Abbott's FreeStyle Libre CGM technology with Tandem Diabetes’ insulin delivery systems for enhanced diabetes management.
In the same month, the company acquired Sugarmate, which is an app popular among insulin-dependent diabetic patients.
Also in the same month, Tandem Diabetes presented favorable real-world data from the early use of the t:slim X2 insulin pump with Control-IQ technology. The outcome demonstrated statistically significant improvements in sensor TIR in patients having both type 1 and type 2 diabetes with no increase in hypoglycemia (or glucose deficiency in the bloodstream).
Shares of the company have rallied 51.9% in the past year compared with the
industry’s 20.9% growth and the S&P 500’s 19.5% rise. Zacks Rank & Key Pick
Currently, Tandem Diabetes carries a Zacks Rank #3 (Hold).
A better-ranked stock from the broader medical space is QIAGEN N.V. (
QGEN Quick Quote QGEN - Free Report) . Its long-term earnings growth rate is estimated at 22.3%. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Today's Best Stocks from Zacks
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