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Here's How Much a $1000 Investment in Insulet Made 10 Years Ago Would Be Worth Today

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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.

Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.

What if you'd invested in Insulet (PODD - Free Report) ten years ago? It may not have been easy to hold on to PODD for all that time, but if you did, how much would your investment be worth today?

Insulet's Business In-Depth

With that in mind, let's take a look at Insulet's main business drivers.

Insulet Corporation is a leading developer, manufacturer and marketer of the Omnipod Insulin Management System. The system is equipped with a self-adhesive, small and lightweight disposable tubeless Omnipod device along with the wireless and handheld Personal Diabetes Manager (PDM). It is worn on the body for approximately three days at a time and allows virtually pain-free automated cannula insertion and blood glucose meter integration.

The Omnipod System is an innovative, discreet and easy-to-use continuous insulin delivery system for people with insulin-dependent diabetes, which the company has been selling since 2005. The Omnipod System consists of the following: the Omnipod Insulin Management System (“Omnipod”) and the Omnipod DASH Insulin Management System (“Omnipod DASH” or “DASH”), which is Insulet’s next generation digital mobile Omnipod platform.

Insulet reports revenues through three segments:

The company earns a huge share of revenues from the Omnipod System in the United States, Canada, Europe and Israel. It operates in these markets either directly or through intermediaries. In 2022, the company’s 74.7% of total revenues came from the U.S. Omnipod sales (up 45% from 2021), while 24.3% (up 5.7% from 2021) was generated from the International Omnipod sales.

Drug Delivery Business (0.9% of total revenues in 2022, down 89.7% from 2021): Insulet has tied up with pharmaceutical and biotechnological companies which use a customized form of the Omnipod System to deliver a drug at a certain administered volume and over a specified period of time.

In addition to the diabetes market space, Insulet has partnered with pharmaceutical and biotechnology companies to tailor the Omnipod System technology platform for the delivery of subcutaneous drugs across other therapeutic areas. Most of the drug delivery revenue consists of sales of Pods to Amgen for use in the Neulasta Onpro kit, an innovative delivery system for Amgen’s white blood cell booster to help reduce the risk of infection after intense chemotherapy.

Bottom Line

Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Insulet, if you bought shares a decade ago, you're likely feeling really good about your investment today.

A $1000 investment made in November 2013 would be worth $4,214.27, or a gain of 321.43%, as of November 7, 2023, according to our calculations. This return excludes dividends but includes price appreciation.

The S&P 500 rose 146.60% and the price of gold increased 44.14% over the same time frame in comparison.

Going forward, analysts are expecting more upside for PODD.

Insulet has been progressing well with its four-pillar strategy with that targets focused market expansion and innovation. The company has been making significant progress with respect to its development roadmap of the Omnipod 5 system. International rollout of the device continues successfully. The company commercially launched Omnipod 5 in the United Kingdom in June and in August, this device reached Germany commercially. Further, Insulet registered continued strong adoption of Omnipod DASH in its international markets. In terms of innovation, in October, the company received the 510(k) clearance for the Omnipod 5 iOS app. However, macroeconomic concerns leading to mounting expenses do not bode well. Insulet’s heavy reliance on the Omnipod System and a tough competitive landscape add to the woes.

Shares have gained 9.89% over the past four weeks and there have been 6 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.

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