Insulet Corporation (PODD - Free Report) recently announced that it has commenced direct commercial operations in Europe for its Omnipod Insulin Management System. This development is a major breakthrough in the company’s international portfolio. Going forward, Insulet will provide sales, distribution, customer support and product services for its diabetic support system, Omnipod.
With the Europe insulin pump market projected to reach a value of more than $2.4 billion by the end of 2024 (data by Market Research Hub), this achievement by Insulet is touted to be timely and strategic.
Insulet’s objective to assume direct commercial operation in Europe surfaced last July. Previously, the company used to run its European business with the assistance of a local distributor named Ypsomed.
The termination of the exclusive distribution agreement with Ypsomed saw Insulet form a European team of above 100 employees with extensive diabetes knowledge and expertise within the European markets.
Insulet currently has 140,000 Omnipod users worldwide. We expect this number to grow fast with the latest progress in Europe. The company is confident about the infrastructure and believes, it is well-positioned to cash in on the rapidly-growing European customer base and enhancing gross margins.
In this context, Insulet has tied up with Teleperformance and HealthLink, which will provide local customer care and product support along with distribution and logistics services. Insulet also entered into distribution agreements with Theras Group and Nordic Infucare in order to receive complete service distribution of Omnipod in Italy as well as in the Nordic markets.
Insulin Pump Growth Prospects in Europe
Going by a Market Research Hub report, the European insulin pump market has extremely high potential, backed by the surging diabetes population. Factors contributing to the growth of insulin pump in Europe are the increasing ageing population, rising prevalence of diabetes, growing awareness on the benefits of insulin pump, higher per capita disposable income and progressive diabetes infrastructure.
With insulin pumps gradually gaining popularity over traditional techniques, the adoption rate has shot up among diabetes patients in Europe. Needless to say, this latest strategic initiative by Insulet is going to reinforce the company’s global operation to a large extent.
Over the past six months, Insulet has consistently outperformed the industry it belongs to. The stock has rallied 25.6% compared with the industry’s 5.4% rise.
Zacks Rank & Key Picks
Insulet currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader medical space are Genomic Health (GHDX - Free Report) , Abiomed (ABMD - Free Report) and Stryker Corporation (SYK - Free Report) .
Genomic Health has an expected earnings growth rate of 187.5% for the quarter to be reported. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Abiomed has a projected long-term earnings growth rate of 27% and a Zacks Rank of 1.
Stryker has an anticipated long-term earnings growth rate of 9.7%. The stock carries a Zacks Rank #2 (Buy).
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