Insulet Corp.'s (NASDAQ: PODD) recent FDA approval of Omnipod 5 for type 2 diabetes patients is set to expand the product's market potential. The planned launch of Omnipod 5 with Abbott's Freestyle Libre 2 Plus sensor is likely to drive further growth in the U.S. markets. Robust financial strength also bodes well for the stock. However, the rising economic uncertainty and competitive pressures remain concerns for the company.
In the past year, this Zacks Rank #3 (Hold) stock has rallied 7.6% compared with the 15.5% growth of the industry and the 24.9% rise of the S&P 500 composite.
The developer, manufacturer and distributor of insulin delivery systems has a market capitalization of $14.22 billion. PODD's earnings surpassed estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 67.5%.
Catalysts for PODD Stock
Omnipod 5, a New Focus: Insulet's game-changing Omnipod 5 stands out as the only FDA-cleared, fully disposable pod-based AID system. The product attributes, such as on-body wearable, simplicity, ease of use and broad accessibility, are the key drivers of its rapid adoption and are successfully driving market growth. The second quarter saw nearly 85% of the new starts coming from people previously using MDI, Insulet's target market, while competitive conversions also remained very strong. The company is driving growth rates above 20% in international revenues, underscoring the strong potential for Omnipod 5's continued expansion. On a promising note, Omnipod 5 recently received the FDA's usage clearance by people with type 2 diabetes ...
