Why Tandem Diabetes Care Stock Crushed the Market Today

Tandem diabetes care (TNDM 4.25%) had some encouraging news to report on the regulatory front Thursday, and after it hit the headlines, investors piled into the stock. By the end of the day, the highly specialized healthcare company’s share price was up more than 4%, good enough to beat the benchmark’s 1.7% rise S&P 500 index.

Crucial approval granted

Tandem announced Thursday morning that it has won an important approval from the European Medicines Agency (EMA) of the European Union (EU). The green light has been given for the company’s t:slim X2 Automated Insulin Delivery (AID) pump to be used for delivery Eli Lillyhis (LLY 1.11%) Lyumjev — an ultra-rapid-acting insulin product.

Although Lyumjev won approval in the 27-nation body as early as 2020, the strict tests that the EU requires of pump manufacturers meant that the Tandem product needed some time to recover. Eli Lilly and Tandem have teamed up to test the former’s insulin product with the latter’s delivery system.

In its press release trumpeting the EU move, Tandem quoted its chief medical officer Jordan Pinsker as saying, “Ultra-rapid-acting insulin is a popular choice for people living with diabetes because of its rapid response time. We are proud to be able to offer Lyumjev compatibility with our t:slim X2 pump as part of an EU AID system, giving more flexibility to our customers in these countries.”

Continuing their search for regulation

Approval in a jurisdiction as large and expansive as the EU is a very positive step for any healthcare company. Encouraged by their win, Tandem and Eli Lilly plan to apply for comparability of Lyumjev with Tandem delivery systems in other markets around the globe.