Modular Medical, Inc. (MODD Quick QuoteMODD - Free Report) announced the issuance of U.S. Patent 11,817,197 B2 for the stream-lined pairing of a pump to a mobile device. The company added Near-Field Communication (NFC) to address cybersecurity risks and the complexity of pairing multiple devices to talk between a phone and a pump.

The receipt of the latest patent is expected to significantly strengthen Modular Medical’s foothold in the global insulin pump technology space.

Significance of the Patent

Per management, following the addition of the NFC, just bringing the phone close to Modular Medical’s pump will create a secure connection, thereby making it much easier to develop, test and maintain. Management also believes that the patent will likely protect the company’s technology addressing pairing and the downloading of patient data to allow clinicians to easily upload and review patients’ data.

Management also feels that Modular Medical’s patented technology will likely eliminate the tedious step of powering on and pairing with various new Bluetooth devices. It is also expected to simplify moving the configuration to a new reusable controller, when needed, without using an intermediate device.

Industry Prospects

Per a report by Fact.MR, the global insulin pump market was valued at $6.18 billion in 2022 and is anticipated to reach $13.34 billion by the end of 2032 at a CAGR of 8%. Factors like the increase in the incidence of diabetes and the growing demand for portable insulin delivery devices are likely to drive the market.

Given the market potential, the latest receipt of the U.S. patent is expected to significantly strengthen Modular Medical’s business.

Recent Developments

Last month, Modular Medical announced the pre-market submission of its MODD1 next-generation insulin pump to the FDA for 510(k) clearance.

In December 2023, Modular Medical announced a collaboration agreement with Glooko, Inc. Per Modular Medical’s management, integrating with Glooko will likely allow clinicians and patients to easily review insulin dosing data from the MODD1 pump when commercially available. In addition, through Glooko's platform, Dexcom CGMS users will be able to view their glucose levels in the same accessible format in conjunction with their pump data.

Price Performance

Shares of Modular Medical have lost 26.8% in the past year against the industry’s 0.3% rise and the S&P 500's 21.2% growth.

Image Source: Zacks Investment Research

Zacks Rank & Other Key Picks

Currently, Modular Medical carries a Zacks Rank #2 (Buy).

A few other top-ranked stocks in the broader medical space are DaVita Inc. (DVA Quick QuoteDVA - Free Report) , Merit Medical Systems, Inc. (MMSI Quick QuoteMMSI - Free Report) and Integer Holdings Corporation (ITGR Quick QuoteITGR - Free Report) .

DaVita, carrying a Zacks Rank #2, has an estimated long-term growth rate of 17.3%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 36.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DaVita’s shares have gained 32.5% compared with the industry’s 6.4% rise in the past year.

Merit Medical, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 11.5%. MMSI’s earnings surpassed estimates in each of the trailing four quarters, with the average being 14.4%.

Merit Medical has gained 11.2% compared with the industry’s 8.6% rise in the past year.

Integer Holdings, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 15%. ITGR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 11.9%.

Integer Holdings’ shares have rallied 41.1% compared with the industry’s 2.2% rise in the past year.