Tandem Diabetes Care Inc (NASDAQ: TNDM) stock fell 10.46% on January 2nd, 2019 (Source: Google finance) due to negative sentiment from Wall Street related to a few of the company’s peers. An analyst at Morgan Stanley lowered their price target on Insulet, which competes directly with Tandem, from $105 to $90 in a research report issued on Wednesday. Insulet’s stock is down about 8% today in response. Morgan Stanley also lowered its price target on DexCom, a, to $135 from $150. Dexcom’s stock is down about 4% in resopnse. An analyst at Citigroup lowered their rating on Medtronic, to “Neutral” from “Buy,” and the price target was lowered to $96 from $109. Shares are falling about 3% in response. A paper was published in the journal Cell Metabolism stating that researchers have found that a new cocktail of drugs can help the body to reactivate insulin-producing cells. While it is still very early, this research could be an important step in curing diabetes.
Meanwhile, for the third quarter of 2018, Pump shipments increased 118 percent to 8,434 pumps from 3,868 pumps, Sales increased 71 percent to $46.3 million from $27.0 million and Operating margin improved to negative 34 percent from negative 49 percent. For the third quarter of 2018, operating expenses totaled $37.5 million, compared to $25.0 million for the same period of 2017. Operating expenses included a non-cash charge for stock-based compensation of $8.8 million, compared to stock-based compensation of $2.1 million for the comparable period of 2017. Operating loss for the third quarter of 2018 was $15.7 million, compared to $13.2 million for the same period of 2017.
Net loss for the third quarter of 2018 was $34.2 million, which included a $12.3 million non-cash charge for the change in fair value of the Series A warrants issued in the Company’s October 2017 financing, as well as a $5.3 million charge associated with the full repayment of the Company’s term loan agreement in August 2018. This compares to a net loss of $16.0 million for the third quarter of 2017.
As of September 30, 2018, the Company had $113.6 million in cash, cash equivalents and short-term investments. This balance reflects the net impact from $108.9 million in net proceeds related to the Company’s equity financing completed in August 2018 that was then used for the full repayment of the Company’s term loan agreement.