No question about this outcome

No question about this outcome

As we wait to see who will reside in the White House in 2021 there is no doubt how things are going with Insulet who released earnings today. Ina word results were fantastic highlighted by the fact the company revised full year guidance higher than PRE-COVID levels. Per the earnings release;

“For the year ending December 31, 2020, the Company is raising its revenue guidance growth range to 20% to 21% (previously 17% to 19%)”

More good news also from the release;

“Completed Omnipod 5 pivotal trial and on track for planned commercial launch in the first half of 2021”

Frankly it’s difficult to find any dark clouds in this very sunny forecast. Like others in the device space Insulet has adapted well to the COVID world we continue to live in. COVID has also yielded some benefits as it has accelerated the company’s efforts to on board patients virtually, a move which will long term benefits once COVID is gone.

So with things going so well what could trip up the company and derail this train that is moving at bullet train speed. Could it be another lockdown given that COVID seems to be accelerating once again? Sure it’s possible but given what the company has learned from the first lockdown we view this scenario as unlikely.

Perhaps a problem could develop with Omnipod 5? Another possibility but given what we know about 5 and its capabilities this doesn’t seem likely either.

Could Aaron Rodgers suffer a season ending injury? Yes we know this has nothing to do with Insulet but as a Bears fan we can always dare to dream. Hey, we don’t wish ill on Mr. Rodgers, but the Bears need all the help we can get.

The biggest takeaway here is Insulet is now among the upper echelon in diabetes devices. The company has a talented management team who is well equipped to handle any obstacles thrown their way. The product line is solid and will only get better with 5. The insulin pump market dynamics continue to be favorable and the competitive environment is not onerous. Sure we’d like to see the company move into the Tyler market but even without a Tyler they are perhaps one of the few maybe the only insulin pump company equipped to deal with Tyler’s arrival.

All in all this was an impressive quarter which looks to point to more impressive results in Q4 and beyond.