Tandem Diabetes Care (TNDM) : commences offering of its common stock, Series A warrants and Series B warrants

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Tandem Diabetes Care announces the pricing of an underwritten public offering of common stock and warrants for gross proceeds of approx. $16.2 mln

• Announces the pricing of an underwritten public offering of (i) 4,630,000 shares of its common stock, (ii) Series A warrants to purchase 4,630,000 shares of its common stock and (iii) Series B warrants to purchase 4,630,000 shares of its common stock, for gross proceeds of approximately $16.2 million, at a public offering price of $3.50 per share and accompanying warrants. The Series A warrants have an exercise price of $3.50 per share, are immediately exercisable and will expire on the fifth anniversary of the date of issuance. The Series B warrants have an exercise price of $3.50 per share, are immediately exercisable and will expire on the six-month anniversary of the date of issuance. The shares of common stock and the warrants will be immediately separable and will be issued separately. All of the shares of common stock and warrants to be sold in the offering are being offered by Tandem.
• Tandem intends to use the net proceeds from the proposed offering for working capital and other general corporate purposes. The offering is expected to close on or about October 17, 2017, subject to customary closing conditions.

Tandem Diabetes Care sees Q3 revs above consensus 

• Co issues upside guidance for Q3 (Sep), sees Q3 (Sep) revs of $26.5-27.5 mln vs. $26.24 mln Capital IQ Consensus Estimate. 
• The Technology Upgrade Program expired as of September 30, 2017 and more than 2,500 people participated in the Program since its inception in July 2016.
• "Hurricanes Harvey and Irma adversely impacted the normal business activities of our sales force, distributors, healthcare providers and potential customers in Texas, Florida and other impacted regions. For instance, the daily inflow to the insurance verification and approval portion of our sales pipeline decreased in early September compared to August, which coincided with the hurricanes. We also experienced a measurable decrease in our sequential monthly pump shipments for the Gulf Coast region for the month of September as compared to the month of August, whereas for all other sales regions we saw either relatively stable volumes or increases in monthly pump shipments for the month of September as compared to the month of August. In addition, we have two independent distributors located within the affected areas that experienced operational disruptions during the periods around the time of the hurricanes."
• Q4 Guidance: "We expect our share of the United States insulin pump market will be approximately 11% at the end of 2017, based on 2015 estimates of the United States insulin pump market by Close Concerns, Inc., an independent consulting and publishing company that provides diabetes advisory services...Historically, we have experienced product shipments and sales being weighted heavily towards the second half of the year, with the highest percentage of product shipments and sales occurring in the fourth quarter of the year. For instance, excluding 2016 when we experienced an unusual sales pattern and implemented our Technology Upgrade Program, in a typical year, our sales for the fourth quarter have ranged from approximately 35% to 38% of the total sales for the full year. We expect seasonality will have a similar impact on our sales in 2017, excluding approximately $3.5 million of deferred sales and upgrade fees received associated with our Technology Upgrade Program that we expect to recognize in the third quarter."