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Insulet surpasses profit expectations driven by strong demand for Omnipod insulin pumps

Medical Technology

Business Honor
21 Febuary, 2025

Insulet's Omnipod sales boosted fourth-quarter profits, with future growth projected amidst rising competition.

Strong demand for Insulet's wearable insulin pumps helped the company achieve a higher-than-expected profit for the fourth quarter on Thursday (PODD.O). The firm manufactures and markets Omnipod, an automated insulin delivery system that dispenses with the need for several daily injections for individuals with insulin-dependent diabetes and does not require the external tubing commonly associated with traditional pumps.

Insulet's Omnipod 5 is the first such device to receive approval for use in the treatment of type 1 and type 2 diabetes. With the increasing demand for the newer GLP-1 diabetes and weight-loss drugs, the medical device company has been trying to soothe investor concerns regarding the potential effect on its insulin pump sales.

Insulet stated in September that it anticipates a higher number of new customers in the second half of 2024 than it did in the same period the previous year. The company is anticipating 16%–20% revenue growth per year in 2025. In the quarter ending December 31, Acton, Massachusetts-based Company’s revenue increased 17.2% to $597.5 million, compared with analysts' expectation of $582.8 million.

The fourth-quarter sales of Omnipod insulin pumps were $585.7 million, missing analysts' expectations of $576 million. In 2025, it is expecting the revenue of Omnipod to increase by 17% to 21%. It made $1.15 per share, adjusted, above the average analyst forecast of $1.02. Dexcom (DXCM.O), Insulet's bigger rival, reported a new tab last week that was higher than fourth-quarter sales and validated its year-end sales estimate.