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PODD Stock to Gain From Launch of Omnipod 5 With Abbott's CGM in US

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Insulet Corp. (PODD - Free Report) announced that its Omnipod 5 Automated Insulin Delivery (“AID”) System is now compatible with Abbott’s (ABT - Free Report) FreeStyle Libre 2 Plus continuous glucose monitoring (CGM) sensor in the United States. The latest development represents a significant step forward in the company’s efforts to expand access to its innovative, tubeless Omnipod 5 AID System for more people.

In August 2024, the FDA cleared Omnipod 5 for use by people with type 2 diabetes (18 years and above), expanding the technology to nearly six million insulin-requiring people in the United States.

PODD Stock’s Likely Trend Following the News

Following the announcement on Nov. 20, PODD shares climbed 1.8% on Wednesday, finishing at $266.58. The company’s solid innovation efforts and ongoing expansion of the Omnipod 5 platform are solidifying its market leadership. We expect the market sentiment toward PODD stock to remain positive surrounding this development.

Insulet has a market capitalization of $18.70 billion at present. Going by the Zacks Consensus Estimate, the company’s earnings are likely to increase 17.1% in 2024 on a 21.2% improvement in revenues. In the trailing four quarters, it delivered an earnings beat of 52.4%, on average.

Growing Presence of Insulet’s Omnipod 5

Insulet’s Omnipod 5 System simplifies diabetes management and has shown an improvement in results by removing the need for multiple daily injections (MDI) therapy and automatically adjusting insulin delivery every five minutes using its advanced SmartAdjust technology. As the most prescribed and preferred pump in the United States, the waterproof, discreet and wearable Omnipod 5 is the first tubeless AID system that communicates with a CGM, proactively correcting for highs and helping protect against lows, day and night. The company states that the latest development will enable millions of Americans who take insulin to use Pod therapy with their preferred CGM sensor.

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The full U.S. market release of Omnipod 5 with Dexcom’s G7 CGM took place in June this year. Expanding global access to Omnipod 5 has been one of the top priorities for Insulet. Following a successful limited market release, Insulet made a full commercial launch of Omnipod 5 with Dexcom G6 and Abbott’s FreeStyle Libre 2 Plus in the United Kingdom and the Netherlands for individuals aged two years and older with type 1 diabetes. In France, Omnipod 5 is compatible with the G6 CGM and has received reimbursement status from the French National Authority for Health.

Industry Prospects Favoring Insulet

Per a Research report, the global diabetes devices market was valued at $30.31 billion in 2023 and is expected to witness a compound annual rate of 7.5% through 2030.  The market is mainly being driven by the growing prevalence of diabetes, the rising usage of insulin-delivery devices and high obesity rates. The market is characterized by a high degree of innovation, focusing on creating solutions for more accurate and efficient diagnosis and treatment.

Other Developments in Insulet

Last month, Insulet announced the full market release of the Omnipod 5 App for iPhone in the United States. The app offers unique capabilities, such as a Custom Foods feature that allows users to input, save and list carbohydrate counts for their typical meal sizes, favorite foods and snacks. Users can select from their personalized list of foods when using the SmartBolus Calculator to determine how much insulin to receive for a meal, minimizing carb counting and simplifying mealtime math.

PODD Stock Price Performance

In the past year, Insulet shares have risen 40.6% compared with the industry’s growth of 19.8%.

PODD’s Zacks Rank and Key Picks

Insulet currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Penumbra (PEN - Free Report) and Globus Medical (GMED - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Penumbra’s shares have risen 16.4% in the past year. Estimates for the company’s 2024 earnings per share have jumped 8.1% to $2.79 in the past 30 days. PEN’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 10.54%. In the last reported quarter, it posted an earnings surprise of 23.19%.

Estimates for Globus Medical’s 2024 earnings per share have increased 0.4% to $2.95 in the past 30 days. Shares of the company have surged 14% in the past year against the industry’s 4.1% fall. GMED’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.65%. In the last reported quarter, it delivered an earnings surprise of 27.69%.

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