The more things change, the more they stay the same. This is an appropriate theme for Insulet (NASDAQ:PODD) who reported results this evening. The company continues to make solid progress and while not accretive to results this year the Ypsomed deal should help the company achieve their long term objective of becoming consistently profitable. The company also continues to benefit from the many missteps from their biggest possible competitor Medtronic (NYSE:MDT). As Diabetic Investor previously report the much awaited Medtronic patch pump has been delayed yet again.
Looked at realistically Insulet has an opportunity to own the patch pump space as every possible competitor continues to stumble their way towards the market. In line with this is the upcoming FDA panel meeting on March 5th which will take a close look at the insulin pump arena. Diabetic Investor sees this a possible opportunity for Insulet as given all the public statements made by the FDA and what Diabetic Investor has learned it appears Medtronic is the focus of this meeting. While no one would dare predict what the FDA might do, Diabetic Investor sees few, if any, positives for Medtronic who already has a damaged reputation in the marketplace.
The bottom line here continues to be what it always has been for Insulet, lower cost of goods and don’t screw up what is a great opportunity. Should they avoid any major missteps it’s getting more and more likely the company will achieve their ultimate goal; getting acquired by a bigger player or new player looking to enter the insulin pump market. As we said when we started, the more things change, the more they stay the same.