Philippe

Philippe asked about a potential drop-off in renewal pump shipments in 2027, considering a prior four-year decline in new patient starts, and how Tandem's pharmacy strategy might offset this potential decline.

Answer

EVP and CFO Leigh Vosseller acknowledged that traditional renewal opportunities based on past new patient starts would decline in coming years. However, she noted that 2026 still expects double-digit growth in renewal shipments due to a tail of customers from 2025 and 2024. She emphasized that the pharmacy model significantly reduces reliance on driving renewal pump purchases, as customers can continue on supplies without needing a new pump cycle, offering lower out-of-pocket costs and easier physician prescribing. International renewal opportunities are also growing.

Philippe asked about a potential drop-off in renewal pump shipments in 2027, considering a prior four-year drop-off in new patient starts, and how Tandem's pharmacy strategy might offset this, along with the outlook for out-year pump shipments.

Answer

EVP and CFO Leigh Vosseller acknowledged that renewal opportunities based on the traditional model might decline in coming years. However, she stated that renewal shipments are still expected to grow double digits year-over-year in 2026, fueled by a tail of customers from 2025 and 2024 whose warranties expired. She emphasized that the pharmacy model significantly reduces reliance on renewal purchases, allowing customers to stay on supplies without worrying about pump replacement cycles, thus mitigating concerns about future declines in renewal opportunities.