Insulet, an Acton, Mass.-based maker of insulin pumps, reported 22.6% revenue growth on a constant currency basis, beating its 11% to 14% guidance range by a wide margin. Performance in the U.S., where the Omnipod 5 pump is available, drove growth, and Insulet is looking to replicate its success overseas, CEO Jim Hollingshead said in a Thursday earnings call.
“We exceeded our expectations once again, achieving revenue growth of 45% in the U.S.,” Hollingshead said. “Moving on to our international operations, we had a solid year of double-digit revenue growth, even with the ongoing impact of [automated insulin delivery device] competition. We expect to begin to offset those headwinds in 2023 with the launch of Omnipod 5 in the U.K. midyear and in Germany towards the end of this year, marking the beginning of our staged international rollout.”
Shares of Insulet rose 3.47% to $307.91 in Friday morning trading.
Omnipod 5 wins market share
Omnipod 5, the insulin pump that Insulet launched in the U.S. in August, drove growth in the fourth quarter. Insulet now has more than 100,000 Omnipod 5 customers, out of a total user base of around 360,000 people, and the latest device represented more than 90% of new customer starts in the quarter.
“There's no question that we're growing at accelerated rates in the United States, way above market growth. We had a record number of competitive switches,” Insulet CFO Wayde McMillan told investors. “We do think that we'll be a share taker for some time to come.”
Competitive switches are driving the growth. Insulet, which put conversions at the heart of its strategy, said that 35% of new Omnipod 5 customers previously used a rival device. Traditionally, 20% of Insulet’s new customers have been competitive conversions. Hollingshead said Insulet is winning back customers who previously switched to rival devices and is investing in support capabilities to cope with the growth.
Insulet expects revenue to rise 14% to 19% this year, driven by 21% to 26% growth in U.S. Omnipod sales. In the first quarter, U.S. Omnipod sales are forecast to increase 33% to 36%.