TNDM Stock Gains on t:slim X2's Compatibility With FreeStyle Libre 3 +

Tandem Diabetes Care, Inc.’s TNDM t:slim X2 insulin pump with Control-IQ+ automated insulin delivery (AID) technology is now compatible with Abbott’s FreeStyle Libre 3 Plus continuous glucose monitoring (CGM) sensor in the United States. The company has initiated an early access program in the country and plans to scale its availability in the second half of 2025.

TNDM Stock’s Likely Trend Following the News

Since the announcement, TNDM’s shares edged up 1.6% to $20.55 last Friday. 

Tandem Diabetes is driving transformative innovation to help reduce the burden and create new possibilities for people living with diabetes. The flagship t:slim X2’s integration with the CGM partners’ sensors validates the company’s effort to strengthen its market expansion ability. Accordingly, we expect the latest launch of Control-IQ+ technology to motivate market sentiment toward the TNDM stock in the upcoming days.

Tandem Diabetes currently has a market capitalization of $1.35 billion. It has an estimated earnings per share (EPS) growth rate of 28.3% in 2025 compared with the industry’s 13.8% rise. Per the Zacks Consensus Estimate, the company’s revenues for 2025 are expected to increase 10.6%. 

More on t:slim X2’s Compatibility With FreeStyle Libre 3 Plus 

The t:slim X2 insulin pump, powered by Control-IQ+ technology, is the latest generation of Tandem Diabetes’ advanced hybrid closed-loop algorithm, which adjusts insulin every five minutes based on predicted glucose values. It is the only system with the unique AutoBolus feature that calculates and delivers a correction bolus to help with missed meal boluses. 

Control-IQ+ is easy to start, use, and personalize, and when working with the FreeStyle Libre 3 Plus sensor, it extends benefits to even more people with diabetes. Meanwhile, Abbott’s FreeStyle Libre 3 Plus sensor has an extended 15-day wear time, transmitting automatic glucose readings every minute directly to the pump. This data is also available to view on the t:slim mobile app, providing users with multiple, convenient ways to access their current glucose trend.

Industry Prospects Favor TNDM

Per a report by Grand View Research, the global insulin delivery device market was valued at $16.43 billion in 2023 and is expected to witness a CAGR of 7.9% by 2027.

The surge in market growth is primarily driven by the rising global prevalence of diabetes, which has created a greater need for advanced and user-friendly solutions for diabetes management. Technological advancements play a crucial role in the market growth, with devices becoming more effective, less invasive and personalized to meet patients' individual needs.

Another Development by TNDM

Earlier this month, Tandem Diabetes entered into an agreement to develop and commercialize integrated diabetes solutions that combine Abbott's future dual glucose-ketone sensor with Tandem's innovative insulin delivery systems to provide more options for people to manage their diabetes.

Additionally, in March, the company commercially launched its Control-IQ+ technology, the latest generation of its advanced hybrid closed-loop algorithm in the United States. 

TNDM Stock Price Performance

In the past year, TNDM shares have lost 49.4% compared with the industry’s decline of 14.8%.

TNDM’s Zacks Rank and Key Picks

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

Some better-ranked stocks in the broader medical space are Align Technology ALGN, Hims & Hers Health HIMS and Cencora COR. 

Align Technology has an estimated long-term earnings growth rate of 11.2% compared with the industry’s 9.9% rise. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 3.4%. Its shares have lost 27.7% compared with the industry’s 3.3% decline in the past year.

ALGN sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Hims & Hers Health, currently carrying a Zacks Rank #2 (Buy), has an earnings yield of 1.3% against the industry’s -10.1%. Shares of the company have surged 129.7% compared with the industry’s 35.9% gain. HIMS’ earnings surpassed estimates in two of the trailing four quarters, matched once and missed in the other, the average surprise being 2.8%.

Cencora, carrying a Zacks Rank #2 at present, has an earnings yield of 5.4% compared with the industry’s 3.8%. Shares of the company have rallied 25.9% against the industry’s 14.4% decline. COR’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6%.

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This article originally published on Zacks Investment Research (zacks.com).

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