An Early Gift For Insulet – New Pod Approved by the FDA

An Early Gift For Insulet – New Pod Approved by the FDA

Christmas has come early for the folks at Insulet (NASDAQ:PODD) as this morning the company announced the FDA has finally approved their new Eros pod. According to a company issued press release; “Insulet Corporation (NASDAQ: PODD), the leader in tubeless insulin pump technology, today announced that the Company has received 510(k) clearance from the U.S. Food and Drug Administration (FDA) for the next-generation OmniPod® Insulin Management System. The new OmniPod insulin pump is more than one-third smaller and one-quarter lighter than the original model, while maintaining the same 200-unit insulin reservoir capacity and easy-to-use features. In addition to the smaller, lighter Pod, the new OmniPod System includes an updated Personal Diabetes Manager (PDM) that also features a series of enhancements. “

Although not mentioned in the press release it is well known that this new pod lowers Insulet’s cost of goods by approximately 20%+ which should help the company as it drives towards becoming truly profitable. The key now becomes insuring that the new pod does not experience any manufacturing or quality issues. Diabetic Investor has been following how the new pod has been doing in Europe, where it is already on the market, and has yet to see any indications of any serious quality issues.

This news also places even more pressure on Medtronic (NYSE:MDT) who so far has only been able to sue Insulet and not come out with a patch pump of their own. As everyone knows Medtronic has been doing lots of talking when it comes to the patch pump market but this talk hasn’t led to any actual product going to the FDA. Just as the company is falling behind Dexcom (NASDAQ:DXCM) in the continuous glucose monitoring market, they are now in even further behind in the patch pump market.

As with almost everything in the wacky world of diabetes devices, success for Insulet will come down to whether they can execute and get this new pod onto the market without incidence. Based on what Diabetic Investor has seen, heard and read we do believe the new pod will increase interest in the OmniPod system as there are patients who did not like the existing pod feeling it was too big and cumbersome. The question is can Insulet turn this interest into sales and then keep those customers happy by not having any serious quality issues. Should they be able to accomplish those two objectives, it just might be possible for them to accomplish what they have sought all along; being able to sell the company.  Stay tuned.