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Insulet Corp’s Omnipod 5 Shows Improved Outcomes In Type 1 Diabetes; Street Sees 10% Upside

Insulet Corporation reported positive results from its first trial of Omnipod 5, an automated insulin delivery system for the treatment of Type 1 diabetes.

Insulet’s (PODD) Senior Vice President and Medical Director, Trang Ly, said, “Our team has been committed to developing a hybrid closed-loop insulin delivery system to advance the treatment of insulin-dependent diabetes.”

Ly added, “Our pivotal study has achieved remarkable improvement in glucose control, evidenced by impressive reduction in HbA1c and improved time in range, together with the lowest rates of hypoglycaemia. We are incredibly proud of these results which demonstrate the system is safe and effective across a wide range of age groups.”

Notably, Omnipod 5 is the first tubeless, wearable system which continuously adapts insulin delivery based on glucose levels and trends. In the trial it showed improved time in range and reduced HbA1c in children, adolescents as well as adults, aged 6 to 70.

The insulin delivery system has received a breakthrough device designation from the U.S. FDA and is currently under review. Insulet expects to bring the product to market in a limited release in 1H 2021. (See Insulet Corp stock analysis on TipRanks)

On March 19, Canaccord Genuity analyst Kyle Rose upgraded the stock to Buy from Hold and maintained its price target of $280 (7.3% upside potential).  Commenting before the release of trial data for Omnipod 5, Rose said, “We believe the launch of O5 fills any perceived competitive gap vs. Existing AP/HCL pumps and will magnify the competitive advantage of the pharmacy channel and benefits of the no-risk, pay-as-you-go model which will support sustained 20%+ top line growth through 2024.”

Turning to rest of the Street, the stock has a Moderate Buy consensus rating alongside an average analyst price target of $287.29 (10.1% upside potential) based on 5 Buys and 4 Holds.  Shares have rallied about 86.5% over the past year.

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