FDA Approval of Omnipod 5 Brightens Insulet's Prospects Through the Midterm; No Change to Our FVE

Insulet racked up another quarter of strong performance and finished the full year very close to our estimates; we’re leaving our fair value estimate intact. Fourth-quarter revenue increased 26% in constant currency thanks to ongoing strength in U.S. sales of Omnipod, which more than offset softer 6% growth outside the U.S. Moreover, the firm continues to make progress on the profitability front with gross margin reaching 68.5% for the full year, up 400 basis points over 2020. We remain confident in Insulet’s narrow economic moat and believe the firm has again demonstrated its formidable ability to forge meaningful innovation, which supports its positive moat trend.