Killing It

There is no other way to characterize Insulet’s results as they are flat out killing it. Check out these facts from the press release;

“Third quarter revenue of $192.1 million, up 27%, compared to revenue of $151.1 million in the prior year, exceeds guidance of $174 to $181 million

For the year ending December 31, 2019, the Company is raising its revenue guidance to a range of $722 to $730 million, representing growth of 28% to 29% (previously 24% to 27%). Revenue ranges by product line are:

• U.S. Omnipod of $410 to $414 million, representing growth of 27% to 28% (previously 21% to 23%)

• International Omnipod of $251 to $253 million, representing growth of 46% to 47% (previously 43% to 45%)”

As good as these results are it will get even better and the company will get an unexpected boost from the FDA, who has yet to approve Tandem’s Control IQ. The fact is when it comes to choosing an insulin pump system Insulet and Tandem are the primary choices with Medtronic continuing to fall out of the choice paradigm. Given that the fourth quarter is traditionally the strongest quarter for insulin pump adoption combined with Control IQ still awaiting approval we see Insulet being the primary beneficiary.

It was also great to hear that company’s entry into hybrid closed loop system arena is progressing very nicely. The dream of having the OmniPod run by a patient’s smartphone will soon become a reality. This one feature alone will drive greater adoption of the Horizon. There is no question that like Tandem Insulet is pushing the technology needle putting additional pressure on Medtronic. Just as the Control IQ will be vastly superior to the 670G, the OmniPod Dash and soon the Horizon places Tandem and Insulet well ahead of Medtronic.

We cannot emphasize enough that Insulet with their pay as you go pharmacy channel model insulates them from anything Medtronic might do in the formulary area. It also goes without saying that like Tandem the fact that the Horizon works with the Dexcom G6 sensor is also a major boost.

Strategically Insulet must keep the pedal to medal and based on everything we heard this afternoon they are doing exactly that. They like Tandem realize that while Medtronic may be wounded the empire still has life. The real key is almost ironic as it is now Medtronic which faces a host of issues and may be in serious danger while Tandem, a company once on the verge of bankruptcy, and Insulet who not that long ago seemed to be a mess, have become the dominate players in the insulin pump market.

Frankly it’s difficult to find anything even slightly negative in what we read or heard today. With the obvious notable exception being that this classical music while waiting for the call has flat out got to go. Given how the respective pump players are doing here are our choices for music – Insulet Good Vibes by Chris Janson – Tandem Sun Daze by Florida Georgia Line – Medtronic What Hurts The Most Rascal Flats or perhaps Star Wars Death of Anakin.