Full Manufacturing Operations Starts At Tandem Diabetes Care's New San Diego Facility

Tandem Diabetes Care, Inc., a medical device company and manufacturer, recently announced the commencement of full manufacturing operations at its new facility located on Barnes Canyon Road in San Diego.

Mnet 176110 Tandem Diabetes Care 1

SAN DIEGO — Tandem Diabetes Care, Inc., a medical device company and manufacturer of the only touchscreen insulin pumps available in the United States, recently announced the commencement of full manufacturing operations at its new facility located on Barnes Canyon Road in San Diego. In support of the Company’s growing operations, the 50,000-square-foot Barnes Canyon facility doubles its previous manufacturing capacity for both insulin pumps and cartridges and expands warehousing for additional infusion set supplies related to the launch of the Company’s new t:lock connector.

“The expanded production and operational capabilities of our new facility are strategically important to ensure we meet the increasing demand for our insulin pumps and supplies, particularly with a growing installed base of customers and new products on the horizon,” said Kim Blickenstaff, president and CEO of Tandem Diabetes Care. “Our new facility is also designed to optimize our manufacturing processes and allow for greater operational efficiencies, which positions us well to achieve our long-term gross margin targets.”

Site inspections by the United States Food and Drug Administration and the California State Food and Drug branch were completed in the fourth quarter of 2017. The new Barnes Canyon facility will initially house two pump production lines and four cartridge manufacturing lines, with room for two additional cartridge lines, in addition to warehousing operations and office space. To further improve operational efficiencies, the Company plans to relocate its remaining production equipment and personnel from its existing facilities located on Roselle Street in San Diego to the new manufacturing facility over the next 30 days.

Strategically, in conjunction with the commencement of full-scale operations at its Barnes Canyon facility, the Company negotiated and recently entered into amendments to its current leases for its Roselle Street facilities. The Company is reducing its Roselle Street leased area by approximately 30,000 square feet effective as of Feb. 1, and extending the period of its leases for the remaining Roselle Street facilities, comprising approximately 77,500 square feet, through May 31, 2022. This series of transactions, together with the Barnes Canyon facility coming online, provides the Company with increased manufacturing square footage, while lowering its rent and related lease obligations over the next two years.

More