Tandem Diabetes Care (Nasdaq: TNDM) says U.S. sales of its insulin pumps were boosted by a scaled pay-as-you-go reimbursement model that’s been rolling out this year.
According to the San Diego–based company’s second-quarter report, released after market close yesterday, the alternative reimbursement structure, available through patients’ pharmacy benefits rather than medical benefits, eliminates upfront pump reimbursement. According to Tandem Diabetes Care, the adoption of the new model resulted in a decrease in pump average selling prices that was more than offset by a corresponding increase in supply prices, boosting the pharmacy channel’s share of revenue to 10% in Q2.
“During the second quarter, our focus was on early implementation. This included updating the end-to-end processes for how our technology is prescribed, how we support customers, and how our orders are processed. We are encouraged with the momentum behind this transition and beginning to see efficiencies that are positively contributing to our results,” CEO John Sheridan said during the company’s earnings call yesterday evening.
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