Insulet Corporation (PODD - Free Report) recently announced the receipt of ISO (International Standards Organization) 27001 certification for its Omnipod DASH System. At the same time, the company also informed about being awarded with the DTSec (Diabetes Technology Society’s) Cybersecurity Standard for Connected Diabetes Device Security certification for the same. With these developments, Insulet has won the stature of being the only insulin pump company to be awarded with both the certifications.
Insulet’s Omnipod DASH System has now globally earned the reputation of implementing the highest standards for information and cyber security and safety with these certifications. This also highlights the company’s ability to securely transfer data between the Pod and the personal diabetes manager, as well as secure cloud storage.
Combating Cyber Risk: A Tough Challenge for MedTech Players
Medical devices linked to the cloud and the Internet of Things (IoT) are exposed to cyber risks. Any wearable and implantable patient monitoring or therapy device with features like wireless connectivity to alter device functionality and extract patient information can now be hacked.
For instance, in April, the FDA had to issue a Safety Communication to inform the patients about the availability of an additional firmware update to combat the confirmed cybersecurity risks discovered in Abbott Laboratories’ implantable cardiac devices. The update would also help manage rapid battery depletion.
A recent survey report by KPMG revealed that around 81% of health care organizations experienced data breach over a two-year period beginning 2015-end (per an article published on 24x7). Going by the same article, medical device threats are ranked as the top information security issue by around one-third of industry executives.
Furthermore, according to the 2018 Cost of a Data Breach Study released by the Ponemon Institute, the average cost of a successful cyberattack across all industries is $3.8 million (per an article from Health Care on Bloomberg Law).
Thus, we believe Insulet has been awarded with the certifications at a time when there is a growing need for medical device manufacturers to prevent hacking in case of network-connected medical devices. This should aid in boosting the uptake of the Omnipod DASH System in the near term.
Share Price Performance
Over the past three months, shares of Insulet have outperformed its industry . The stock has rallied 11.6% against the industry’s 2.8% decline.
Zacks Rank & Key Picks
Insulet currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space are Intuitive Surgical, Inc. (ISRG - Free Report) , Illumina, Inc (ILMN - Free Report) and Veeva Systems (VEEV - Free Report) .
Intuitive Surgical has long-term expected earnings growth rate of 15.6% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Illumina’s long-term earnings growth rate is projected at 23.4%. The stock carries a Zacks Rank #2.
Veeva Systems’ long-term earnings growth rate is estimated at 19.3%. The stock carries a Zacks Rank #2.
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