What Happened?
Shares of diabetes technology company Tandem Diabetes Care (NASDAQ: TNDM) fell 2.5% in the afternoon session after a new competitor, Modular Medical, announced the first patient use of its Pivot tubeless insulin patch pump.
The news signaled a new competitive threat, particularly because Modular Medical was founded by Paul DiPerna, who also founded Tandem Diabetes in 2005 and invented its t:slim insulin pump.
The Pivot pump is designed for insulin-dependent adults who rely on multiple daily injections, a group Modular Medical described as a large, underserved population representing a multi-billion dollar market. The market entry by a company led by Tandem's own founder raised investor concerns about increased competition and potential loss of market share.
After the initial drop, the shares shed some of the losses and rose to $15.43, down 2.5% from the previous close.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Tandem Diabetes? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Tandem Diabetes’s shares are extremely volatile and have had 51 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 29 days ago when the stock gained 13.8% on the news that Wells Fargo analysts upgraded the company's stock to Overweight from Equal Weight.
The bank also raised its price target to $27 from $21, citing a positive outlook for the company's pharmacy channel. The upgrade followed a meeting with Tandem's management. Analysts noted that while the first quarter's pharmacy results were somewhat disappointing, the company successfully rebuilt its formulary coverage—the list of prescription drugs covered by an insurance plan—from zero to approximately 40% in a single off-cycle quarter.
Looking ahead, early data from the second quarter appeared encouraging, with April's sales volume exceeding March's, indicating growing momentum.
Tandem Diabetes is down 28.4% since the beginning of the year, and at $15.43 per share, it is trading 45.4% below its 52-week high of $28.26 from February 2026. Investors who bought $1,000 worth of Tandem Diabetes’s shares 5 years ago would now be looking at only $158.42.
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