It seems that Insulet Corporation (PODD - Free Report) is pulling out all the stops to strengthen its international operations. Following its news of commencing direct commercial operations in Europe, the company once again hit headlines with another major development via its Omnipod Insulin Management Systemin Canada.
Per the news release, Omnipod — Insulet’s tubeless insulin pump technology — has been selected as the preferred insulin pump for diabetic patients in the province of British Columbia, Canada, under the expanded British Columbia PharmaCare insulin pump program.
This is a big breakthrough for the company to fortify its foothold in Canada as from now on,any eligible patient, requesting an insulin pump for the first time or for its replacement, will receive a coverage under the Omnipod System.
Insulin Pump Prospects in Canada
Omnipod’s huge market potential in Canada is evident from its only tubeless insulin pump system sold in the region. The system supplies continuous insulin for up to three days without the use of tubes, which eliminates the worry of administering multiple daily injections. Currently, Omnipod is available for all age groups in British Columbia.
With growing prevalence of diabetes in Canada, we believe this development by Insulet to be well-timed. According to Research and Market data, Canada insulin pump market has immense growth opportunities with its value projected to reach nearly CAD 1 billion mark by the end of 2024. Per the report, the government of Canada has extended its diabetes management policy along with diabetes technology, which will further boost the market for both insulin pump as well as continuous glucose monitoring devices in Canada.
Going by Diabetes Canada, an estimate within British Columbia shows 18,300 people being affected with Type 1 diabetes, which accounts for approximately 25% of patient population resorting to insulin pump therapy. With the coverage widening beyond 25 years of age, the company anticipates insulin pump adoption to increase significantly.
While Insulet’s Omnipod earned the status of a preferred insulin pump for diabetic patients in British Columbia, Medtronic’s MiniMed insulin pump system is another popularly-used diabetes management device in Canada, but in tubing category.
Share Price Performance
Over the past six months, shares of Insulet have consistently outperformed the industry it belongs to. The stock has rallied 10.5% compared with the industry’s 3.7% rise.
Zacks Rank and 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) , Stryker Corporation (SYK - Free Report) and Integer Holdings Corporation (ITGR - Free Report) .
Genomic Health projects an earnings growth rate of 187.5% for the to-be-reported quarter. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Stryker has a projected long-term earnings growth rate of 9.7%. The stock carries a Zacks Rank #2 (Buy).
Integer Holdings has an expected long-term earnings growth rate of 15%. The stock holds a Zacks Rank of 2.
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