Tandem pairing with Abbott sensors can be ‘big deal,’ says Lake Street

After Abbott (ABT) announced yesterday that the U.S. FDA has cleared both its FreeStyle Libre 2 and FreeStyle Libre 3 continuous glucose monitoring, or iCGM, system sensors for integration with automated insulin delivery systems, Lake Street analyst Brooks O’Neil said Abbott’s collaboration with Tandem Diabetes (TNDM) will make it possible for Libre users to pair their sensor with a pump from Tandem as well and thinks this likely this will happen in the next few quarters. The firm notes that there are currently over 4.5M Libre users globally and that Tandem has about 420,000. "That means, if 10% of the Libre users decide to pair their CGM with a Tandem pump, it could double Tandem’s revenue. No one knows how many will decide to do so, so we are still thinking speculatively. But to us, this seems plausible… We have nothing in our numbers for this, but we think it will be a big deal," said the firm, which affirms a Buy rating and $60 price target on Tandem shares.