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Insulet (PODD) Gains From Product Innovation, Global Expansion
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Insulet (PODD - Free Report) appears well-positioned on solid prospects in the diabetes market. The company is progressing well with respect to product innovation and geographic expansion. The stock carries a Zacks Rank #2 (Buy) currently.
Insulet is witnessing continued uptake of Omnipod through the U.S. pharmacy channel. Insulet continues to drive increased awareness for Omnipod through its direct-to-consumer advertising campaign in the United States and across select international markets. Omnipod is specifically designed for individuals on Multiple Daily Insulin Injections (MDI) and the company is driving pump penetration across all age groups in both the Type 1 and Type 2 markets, while also gaining in terms of market share in these markets.
Omnipod 5 continues to be a driving force behind U.S. and international growth. In the United States, Omnipod 5 represented the majority of new customer starts in the third quarter. Customer retention remains strong. In the United States, in the third quarter, Omnipod’s new customer starts coming from multiple daily injections and legacy tubed pumps reflected an estimated 80-20 percentage split, which is in line with the company’s historical mix.
Further, Insulet continues to work on expanding access to Omnipod 5 as well as increasing the total addressable market for the platform. In 2023, Insulet commercially launched Omnipod 5 in the United Kingdom and in August, this device reached Germany commercially. The company also received an FDA clearance for its basal-only Pod named Omnipod GO. This is a unique product for the type 2 market. The company is bringing this innovation to market in 2024. According to Insulet, by the end of 2024, it targets Omnipod 5 to be available for the majority of its European customers.
Further, Insulet has achieved several milestones with respect to expanding Omnipod’s market access. The company launched the Omnipod DASH system in the United States in 2019. In 2020, the company made the full commercial rollout of Omnipod DASH in Europe. In late 2021, Insulet launched the Omnipod DASH system in Australia and Turkey. Further, the Omnipod DASH was launched in the United Arab Emirates and Saudi Arabia markets in 2022. Omnipod is currently available in 24 countries worldwide.
Omnipod DASH continues to be the leading insulin pump, with an indication for use in the Type 2 market. While the company is yet to progress with Omnipod 5 Automated Insulin Delivery (AID) in the Type 2 market, the underlying demand for Omnipod DASH in the Type 2 market is encouraging. In third-quarter 2023, Insulet registered quarter-over-quarter sales growth with Omnipod DASH.
On the flip side, Insulet is incurring higher costs associated with Omnipod 5 production. Added to this, higher production costs due to global inflation, as well as supply chain disruptions and labor shortages, continue to put pressure on margins. During the third quarter, selling, general & administrative expenses rose 28.7%, while research and development expenses rose 28.4% year over year.
Insulet operates in a highly competitive environment, dominated by firms ranging from large multinational corporations with significant resources to start-ups. Also, the competitive and regulatory conditions in the markets where the company operates limit Insulet’s ability to switch to strategies like price increases and other drivers of cost increases.
The company’s Omnipod System primarily competes with Medtronic’s market-leading MiniMed, a division of Medtronic. Notably, MiniMed boasts a major part of the conventional insulin pump market share in the United States. Other suppliers in the United States include Tandem Diabetes Care, Inc.
Over the past year, shares of PODD have declined 34.9% compared with the industry’s 0.6% decline.
Estimates for DaVita’s 2023 earnings per share have remained constant at $8.07 in the past 30 days. Shares of the company have gained 7.4% in the past year compared with the industry’s growth of 2.9%.
DVA’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 36.6%. In the last reported quarter, it delivered an average earnings surprise of 48.4%.
Estimates for Bruker’s 2023 earnings per share have improved 0.8% to $2.53 in the past 30 days. Shares of the company have lost 34.9% in the past year compared with the industry’s decline of 0.6%.
BRKR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 10.2%. In the last reported quarter, it delivered an earnings surprise of 17.5%.
Haemonetics’ stock has gained 13.3% in the past year. Earnings estimates for Haemonetics have remained constant at $3.89 for fiscal 2024 and increased from $4.15 to $4.18 for fiscal 2025 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 16.1%. In the last reported quarter, it delivered an earnings surprise of 5.3%.
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Insulet (PODD) Gains From Product Innovation, Global Expansion
Insulet (PODD - Free Report) appears well-positioned on solid prospects in the diabetes market. The company is progressing well with respect to product innovation and geographic expansion. The stock carries a Zacks Rank #2 (Buy) currently.
Insulet is witnessing continued uptake of Omnipod through the U.S. pharmacy channel. Insulet continues to drive increased awareness for Omnipod through its direct-to-consumer advertising campaign in the United States and across select international markets. Omnipod is specifically designed for individuals on Multiple Daily Insulin Injections (MDI) and the company is driving pump penetration across all age groups in both the Type 1 and Type 2 markets, while also gaining in terms of market share in these markets.
Omnipod 5 continues to be a driving force behind U.S. and international growth. In the United States, Omnipod 5 represented the majority of new customer starts in the third quarter. Customer retention remains strong. In the United States, in the third quarter, Omnipod’s new customer starts coming from multiple daily injections and legacy tubed pumps reflected an estimated 80-20 percentage split, which is in line with the company’s historical mix.
Further, Insulet continues to work on expanding access to Omnipod 5 as well as increasing the total addressable market for the platform. In 2023, Insulet commercially launched Omnipod 5 in the United Kingdom and in August, this device reached Germany commercially. The company also received an FDA clearance for its basal-only Pod named Omnipod GO. This is a unique product for the type 2 market. The company is bringing this innovation to market in 2024. According to Insulet, by the end of 2024, it targets Omnipod 5 to be available for the majority of its European customers.
Insulet Corporation Price
Insulet Corporation price | Insulet Corporation Quote
Further, Insulet has achieved several milestones with respect to expanding Omnipod’s market access. The company launched the Omnipod DASH system in the United States in 2019. In 2020, the company made the full commercial rollout of Omnipod DASH in Europe. In late 2021, Insulet launched the Omnipod DASH system in Australia and Turkey. Further, the Omnipod DASH was launched in the United Arab Emirates and Saudi Arabia markets in 2022. Omnipod is currently available in 24 countries worldwide.
Omnipod DASH continues to be the leading insulin pump, with an indication for use in the Type 2 market. While the company is yet to progress with Omnipod 5 Automated Insulin Delivery (AID) in the Type 2 market, the underlying demand for Omnipod DASH in the Type 2 market is encouraging. In third-quarter 2023, Insulet registered quarter-over-quarter sales growth with Omnipod DASH.
On the flip side, Insulet is incurring higher costs associated with Omnipod 5 production. Added to this, higher production costs due to global inflation, as well as supply chain disruptions and labor shortages, continue to put pressure on margins. During the third quarter, selling, general & administrative expenses rose 28.7%, while research and development expenses rose 28.4% year over year.
Insulet operates in a highly competitive environment, dominated by firms ranging from large multinational corporations with significant resources to start-ups. Also, the competitive and regulatory conditions in the markets where the company operates limit Insulet’s ability to switch to strategies like price increases and other drivers of cost increases.
The company’s Omnipod System primarily competes with Medtronic’s market-leading MiniMed, a division of Medtronic. Notably, MiniMed boasts a major part of the conventional insulin pump market share in the United States. Other suppliers in the United States include Tandem Diabetes Care, Inc.
Over the past year, shares of PODD have declined 34.9% compared with the industry’s 0.6% decline.
Other Key Picks
Some other top-ranked stocks in the broader medical space are DaVita (DVA - Free Report) , Bruker (BRKR - Free Report) and Haemonetics (HAE - Free Report) . DaVita sports a Zacks Rank #1 (Strong Buy) at present, while Bruker and Haemonetics carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for DaVita’s 2023 earnings per share have remained constant at $8.07 in the past 30 days. Shares of the company have gained 7.4% in the past year compared with the industry’s growth of 2.9%.
DVA’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 36.6%. In the last reported quarter, it delivered an average earnings surprise of 48.4%.
Estimates for Bruker’s 2023 earnings per share have improved 0.8% to $2.53 in the past 30 days. Shares of the company have lost 34.9% in the past year compared with the industry’s decline of 0.6%.
BRKR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 10.2%. In the last reported quarter, it delivered an earnings surprise of 17.5%.
Haemonetics’ stock has gained 13.3% in the past year. Earnings estimates for Haemonetics have remained constant at $3.89 for fiscal 2024 and increased from $4.15 to $4.18 for fiscal 2025 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 16.1%. In the last reported quarter, it delivered an earnings surprise of 5.3%.