Insulet shares rebound after results top estimates

By Eleanor Laise

Insulin pump maker seeks to dispel investor fears that Ozempic and Wegovy could shrink the market for its products

Insulet Corp. shares (PODD) climbed 10% premarket on Friday after the insulin pump maker late Thursday reported third-quarter results that beat expectations and aimed to dispel some investor fears about how popular weight-loss drugs could impact its business.

The company reported net income of $51.9 million, or 74 cents per share, after a loss of $5.2 million, or 8 cents per share, in the year-earlier period. Adjusted earnings per share of 71 cents topped the FactSet consensus of 40 cents. Revenue in the quarter totaled $432.7 million, up from $340.8 million a year earlier and ahead of the FactSet consensus of $414 million.

Insulet raised its full-year revenue growth guidance to a range of 26% to 27%, from 22% to 25% previously.

Like shares of other device makers focused on diabetes, Insulet shares have been dragged down this year by fears that GLP-1 drugs such as Novo Nordisk's (NVO) Ozempic and Wegovy would shrink the market for its products. Insulet shares are down more than 52% in the year to date.

On a call with analysts Thursday, Insulet president and CEO James Hollingshead continued the device makers' recent efforts to push back on the idea that GLP-1 drugs will shrink their business. Real-world evidence, Hollingshead said, suggests that patients using semaglutide continue to have their diabetes progress "with limited or no incremental duration of effect over previous drugs." Insulet, he said, believes that "GLP-1s do not materially impact our end markets."

Leerink Partners analysts on Thursday raised their price target for Insulet shares to $190, from $184 previously, saying "accelerating GLP-1 adoption is going to have a negligible impact on the commercial outlook" for Insulet in type 2 diabetes.

-Eleanor Laise

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11-03-23 0833ET

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