Meridian Small Cap Growth Fund on Tandem Diabetes Care, Inc.
Thesis
Meridian owns Tandem Diabetes Care for its differentiated insulin-pump technology, expanding installed base, and recurring supply revenue that grows with the user base. Shares weakened as the transition to a pharmacy-based pay-as-you-go reimbursement model reduced near-term revenue visibility and guidance disappointed, while a new competing patch pump added pressure. The fund nevertheless views the reimbursement transition as a long-term positive and continues to support the investment case despite the near-term uncertainty.
“We own it for its differentiated pump technology, growing installed base, and the recurring supply revenue that expands with its user base.”
Key risks
- Near-term revenue uncertainty from the pharmacy-based reimbursement transition
- Competition from a new patch-pump entrant