Tandem Diabetes Care(NASDAQ: TNDM) had some encouraging news to report on the regulatory front Thursday, and after it hit the headlines investors piled into the stock. At the end of the day the highly specialized healthcare company's share price had risen in excess of 4%, good enough to top the 1.7% rise of the benchmark S&P 500 index.
Crucial approval granted
Tandem announced Thursday morning that it had won an important approval from the European Union's (EU) European Medicines Agency (EMA). The green light was turned on for the company's t:slim X2 automated insulin delivery (AID) pump to be used to deliver Eli Lilly's (NYSE: LLY) Lyumjev -- an ultra-rapid acting insulin product.
Although Lyumjev earned its approval in the 27-nation body back in 2020, the stringent testing the EU requires of pump manufacturers meant Tandem's product needed some time to catch up. Eli Lilly and Tandem teamed up in the testing of the former's insulin product with the latter's delivery system.
In its press release trumpeting the EU's move, Tandem quoted its chief medical officer Jordan Pinsker as saying that "Ultra-rapid-acting insulin is a popular choice for people living with diabetes due to its fast response time. We are proud to be able to offer Lyumjev compatibility with our t:slim X2 pump as part of an AID system in the EU, providing more flexibility for our customers in these countries."
Continuing on their regulatory quest
Approval in a jurisdiction as large and sprawling as the EU is a very positive step for any healthcare company. Emboldened by their win, Tandem and Eli Lilly plan to apply for Lyumjev comparability with Tandem's delivery systems in other markets around the globe.
Should you invest $1,000 in Tandem Diabetes Care right now?
Before you buy stock in Tandem Diabetes Care, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Tandem Diabetes Care wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $694,743!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of September 16, 2024
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
