Insulet Earnings: Rocket-Fueled Omnipod 5 Continues to Exert Competitive Pressure

Insulet posted solid second-quarter results that were largely consistent with our expectations, and our small adjustments to our underlying assumptions weren’t enough to move the needle on valuation. We’re holding steady on our fair value estimate. Quarterly top-line growth of 32% in constant currency was driven by whopping 41% growth in U.S. Omnipod sales. As we’ve discussed in previous quarters, this stellar growth reflects the enthusiastic adoption of OmniPod 5, Insulet’s first pump to feature automated insulin delivery, or AID. Though Insulet was the last major pump maker to offer AID, it remains the first and only tubeless, patch pump to offer AID. We continue to think the tubeless, waterproof Omnipod offers a substantially different user experience that is friendlier than that of the traditional tubed pumps. This latest commercial success of Omnipod underscores our confidence in Insulet’s narrow economic moat.