In line with Tandem Diabetes Care, Inc.'s (TNDM - Free Report) focus on strengthening its global presence, the company recently announced thatit has been registered as an approved vendor of insulin pumps and supplies under the Assistive Devices Program (ADP) in Ontario, Canada. This development came close on the heels of the company receiving a Heath Canada Medical Device License for its t:slim X2 Insulin Pump.
This t:slim X2 Insulin Pump features Dexcom G5 Mobile continuous glucose monitoring (CGM) integration. This in turn, makes the instrument the only CGM-integrated insulin pump approved in Canada for making daily diabetes treatment decisions without fingersticks.
The pumping device includes advanced features like a large color touchscreen, rechargeable battery, USB connectivity and watertight construction. Moreover, dynamic glucose data can be easily accessed and shared using a compatible mobile apparatus.
Per Diabetes Canada, there are more than 3.6 million Canadians currently living with diabetes and of them, nearly 10% are afflicted with type 1 syndrome. The company projects that with this development, nearly 40% people suffering type 1 diabetes in Canada reside in Ontario and are now able to obtain reimbursement for the t:slim X2 insulin pump.
Observing a high level of interest from people with diabetes in Canada, where insulin pump options have been limited in recent years, we expect this latest development by Tandem to be perfectly strategic and well timed.
International Expansion So Far
Tandem Diabetes is consistently focusing on solidifying its international base. Earlier this year, the company informed about entering into agreements with independent distributors for markets in Australia, New Zealand, Italy, Scandinavia, South Africa, Spain and the United Kingdom.
According to the International Diabetes Federation estimates, roughly 425 million people were diagnosed with diabetes globally in 2017, of which around 10% or 42.5 million were detected with type 1. Therefore, the company’s decision to go overseas has been aptly timed and is likely to cash in on the bountiful opportunities in the niche market.
Tandem Diabetes has outperformed its industry in the past three months. The stock has soared 77% compared with the industry’s 3.3% rise.
Zacks Rank & Key Picks
Tandem Diabetes has a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader medical space are ABIOMED, Inc., (ABMD - Free Report) , Varian Medical Systems, Inc. (VAR - Free Report) and Masimo, Inc. (MASI - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ABIOMED’s long-term earnings growth rate is expected at 27.67%.
Varian’s long-term earnings growth rate is projected at 8.00%.
Masimo’s long-term earnings are projected to grow 15.60%.
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