San Diego Business Journal

Tandem Diabetes Reports Sales Boosts for Q4, 2013

By SDBJ Staff Thursday, March 6, 2014

Tandem Diabetes Care Inc. reported sales of $29 million for the year ended Dec. 31, 2013, compared with $2.5 million for 2012. The company’s operating loss for 2013 was $49.4 million compared with $33 million for 2012.

Tandem’s (Nasdaq: TNDM) reported sales for fourth quarter 2013 were $10.2 million, compared with $2.3 million for the same period of 2012. Commercial sales of Tandem’s t:slim Insulin Pump and related supplies commenced in August 2012, the company said. Operating loss for fourth quarter 2013 was $16.5 million, compared with $8.4 million for the same period of 2012.

According to the company, sales for fourth quarter 2013 also grew 32 percent sequentially over third quarter 2013.

“We experienced tremendous growth in 2013 and achieved positive gross margins in our first full year of commercialization,” said Kim Blickenstaff, president and CEO of Tandem. “We believe these are key accomplishments that establish a firm foundation from which we can expand market awareness and adoption of the t:slim Insulin Pump.”

For the year ended Dec. 31, 2013, gross margin was 21 percent compared with a negative gross margin of minus 54 percent for the same period of 2012. Gross margin for fourth quarter 2013 was 12 percent, compared with a negative gross margin of minus 20 percent for fourth quarter 2012. The gross margins for the year and quarter ended Dec. 31, 2013, were negatively impacted by about $1.3 million of costs directly related to the previously announced voluntary cartridge recall.