Stelo OTC Launch Impact
Q: How does Stelo OTC clearance expand market and sales?
A: The Stelo OTC clearance opens access to 25 million people with type 2 diabetes not on insulin or without severe hypoglycemia. " By eliminating the prescription process, it makes the product very accessible. " The sales force is being repositioned to focus more on primary care physicians who see most type 2 patients not on insulin. "

Margin Outlook
Q: How should we think about margin progression this year?
A: We expect 300 to 400 basis points of gross margin expansion over the year. " While investments in Japan and the Stelo launch will impact margins, we anticipate some leverage throughout the year, contributing to operating margin expansion despite a slight gross margin decrease compared to prior year. "

Basal Patient Adoption
Q: How is basal scaling; any insights on market share?
A: Basal adoption is progressing as expected, contributing significantly to a record new patient quarter. " We aim to increase adoption from 15% to 23% of the basal population in the U.S. this year. " We see ourselves taking market share, supported by script data showing growth in this segment. "

Competitor Pricing Pressure
Q: How are you considering potential pricing pressure from competitors?
A: We are comfortable with our pricing and contracts in the U.S., offering features like connection to multiple devices, share follow system, and direct Apple Watch integration. " Our pricing is set regardless of AID usage, and we feel confident even in tender systems internationally. "

Sales Force Expansion
Q: Can you elaborate on the sales force expansion and impact?
A: We've repositioned our sales force to focus more on endocrinologists and high prescribers while adding resources to target primary care physicians. " The expansion allows us to cover more ground, enhancing our presence in both existing markets and with the Stelo launch. "

15-Day Sensor Plans
Q: What are the steps to bring a 15-day sensor to G7?
A: We are conducting clinical and R&D efforts to move the G7 platform to 15 days, expected after 2024. " Economically, this shift reduces sensors sold over 30 days from three to two, improving margins if reliability is maintained. "

Early Treatment Coverage Expansion
Q: Are payers expanding coverage earlier in the treatment paradigm?
A: Some plans cover all people with diabetes, but broader expansion is not expected in 2024. " We anticipate that real-world data from Stelo and ongoing clinical work will help demonstrate value to payers over the next 2–3 years. "

Japan Market Launch
Q: What steps are you taking in Japan given coverage there?
A: We are going direct in Japan due to minimal penetration with our previous distributor. " Building infrastructure and relationships will take time, but we expect Japan to become a significant market in the future. "

Attrition and Reorder Rates
Q: What's happening with attrition and reorder rates during G7 transition?
A: Retention and utilization rates between G6 and G7 are relatively consistent. " We have not seen significant differences across patient populations to date, but we will monitor as we expand into non-intensive insulin therapy segments. "

Resource Allocation for Stelo
Q: How will you allocate resources between Stelo and core products?
A: We have capacity to support Stelo without impacting core products. " We will continue to prioritize resource allocation to maximize returns and serve unmet needs efficiently. "