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Insulet Advances on Omnipod Reimbursement Update, Runs Risks
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On Sep 18, we issued an updated research report on Insulet Corporation (PODD - Free Report) . We are upbeat about the company's series of developments with respect to expansion of Omnipod's market reach while a tough competitive landscape raises concerns. The stock carries a Zacks Rank #3 (Hold).
Shares of this leading developer, manufacturer and marketer of the Omnipod Insulin Management System have outperformed its industry over the past year. The stock has soared 80.8% compared with the industry's 21.4% rise.
We are encouraged by the year-over-year improvement in net loss and revenues on a solid uptake of Omnipod system in the United States. Growing global customer base also drove revenues. Furthermore, a better gross margin buoys optimism.
Insulet has been progressing fast pertaining to its four-pillar strategy and also seems well on track to achieve $1 billion revenues, a favorable 70% impact on gross margin and above-market profitability in 2021. Notably, the four key strategic initiatives are widening of Omnipod’s market access, executing on the company’s innovation roadmap, building the U.S. manufacturing facility successfully and implementing its plan to sell directly in Europe from Jul 1 onward.
Notably, Insulet kick-started 2018 with positive reimbursement updates. The company achieved several milestones regarding the Omnipod’s extended market reach. To begin with, Insulet announced Omnipod System’s selection in July as the preferred insulin pump for diabetic patients in the province of British Columbia, Canada, under the expanded British Columbia PharmaCare insulin pump program.
CMS (Centers for Medicare and Medicaid Service) issued guidance in January, which required Omnipod to be covered under the Medicare Part D prescription drug benefit program. This move further stretched the company’s contact with around 450,000 individuals, who suffer Type 1 diabetes and are covered under Medicare/Medicaid benefit. Further, the decision will provide Insulet with a convenient way to avail of the state Medicaid coverage.
Moreover, two Medicare Part D plan sponsors — Express Scripts and Magellan — added Omnipod as a covered benefit, effective Apr 1. Furthermore, effective April 2018, Insulet also got access to UnitedHealthcare’s in-network coverage of Omnipod.
These developments elongate the company’s access to around 40% of the U.S. market representing roughly 600,000 individuals, who initially had little or no access to Omnipod.
Meanwhile, Insulet operates in a highly competitive environment, dominated by firms ranging from large resourceful multinational corporations to start-ups. Also, the competitive and regulatory conditions in the markets wherein the company operates limit Insulet's ability to switch to strategies like price increases. The company's Omnipod System primarily contests with Medtronic plc's market-leading MiniMed system.
Additionally, the company is exposed to risks associated with a weaker global economy and lower reimbursement rates.
Key Picks
Some better-ranked stocks in the broader medical space are Intuitive Surgical (ISRG - Free Report) , Amedisys, Inc. (AMED - Free Report) and Masimo Corporation (MASI - Free Report) .
Amedisys’ expected long-term earnings growth rate is 18.6%. The stock has a Zacks Rank of 1 at the moment.
Masimo’s expected long-term earnings growth rate is 14.8%. The stock carries a Zacks Rank #2 (Buy) at present.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Insulet Advances on Omnipod Reimbursement Update, Runs Risks
On Sep 18, we issued an updated research report on Insulet Corporation (PODD - Free Report) . We are upbeat about the company's series of developments with respect to expansion of Omnipod's market reach while a tough competitive landscape raises concerns. The stock carries a Zacks Rank #3 (Hold).
Shares of this leading developer, manufacturer and marketer of the Omnipod Insulin Management System have outperformed its industry over the past year. The stock has soared 80.8% compared with the industry's 21.4% rise.
We are encouraged by the year-over-year improvement in net loss and revenues on a solid uptake of Omnipod system in the United States. Growing global customer base also drove revenues. Furthermore, a better gross margin buoys optimism.
Insulet has been progressing fast pertaining to its four-pillar strategy and also seems well on track to achieve $1 billion revenues, a favorable 70% impact on gross margin and above-market profitability in 2021. Notably, the four key strategic initiatives are widening of Omnipod’s market access, executing on the company’s innovation roadmap, building the U.S. manufacturing facility successfully and implementing its plan to sell directly in Europe from Jul 1 onward.
Notably, Insulet kick-started 2018 with positive reimbursement updates. The company achieved several milestones regarding the Omnipod’s extended market reach. To begin with, Insulet announced Omnipod System’s selection in July as the preferred insulin pump for diabetic patients in the province of British Columbia, Canada, under the expanded British Columbia PharmaCare insulin pump program.
CMS (Centers for Medicare and Medicaid Service) issued guidance in January, which required Omnipod to be covered under the Medicare Part D prescription drug benefit program. This move further stretched the company’s contact with around 450,000 individuals, who suffer Type 1 diabetes and are covered under Medicare/Medicaid benefit. Further, the decision will provide Insulet with a convenient way to avail of the state Medicaid coverage.
Moreover, two Medicare Part D plan sponsors — Express Scripts and Magellan — added Omnipod as a covered benefit, effective Apr 1. Furthermore, effective April 2018, Insulet also got access to UnitedHealthcare’s in-network coverage of Omnipod.
These developments elongate the company’s access to around 40% of the U.S. market representing roughly 600,000 individuals, who initially had little or no access to Omnipod.
Meanwhile, Insulet operates in a highly competitive environment, dominated by firms ranging from large resourceful multinational corporations to start-ups. Also, the competitive and regulatory conditions in the markets wherein the company operates limit Insulet's ability to switch to strategies like price increases. The company's Omnipod System primarily contests with Medtronic plc's market-leading MiniMed system.
Additionally, the company is exposed to risks associated with a weaker global economy and lower reimbursement rates.
Key Picks
Some better-ranked stocks in the broader medical space are Intuitive Surgical (ISRG - Free Report) , Amedisys, Inc. (AMED - Free Report) and Masimo Corporation (MASI - Free Report) .
Intuitive Surgical’s expected long-term earnings growth rate is 14.7%. The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Amedisys’ expected long-term earnings growth rate is 18.6%. The stock has a Zacks Rank of 1 at the moment.
Masimo’s expected long-term earnings growth rate is 14.8%. The stock carries a Zacks Rank #2 (Buy) at present.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>