Piper Jaffray Remains Bullish on Insulet (PODD) Following Conference Call with Management

Piper Jaffray maintained an Overweight rating and $41.00 price target on Insulet Corporation (NASDAQ: PODD) after hosting a call with management. Management reaffirmed that it is not impacted by United’s decision as OmniPod is not viewed as durable medical equipment by the insurer. That said, management was straightforward in its assessment of the pump market stating that without clinical data proving out both the clinical and economic benefits of pump therapy, the door was open for other payors to follow United.

Analyst Brooks West commented, "We hosted a call with Insulet’s senior management team (CEO, CFO, President of Diabetes) to discuss the state of the insulin pump market in the wake of the recently announced exclusive DME agreement between Unitedhealth and Medtronic. We covered Insulet’s diabetes pipeline and clinical programs, a read of EU partner Ypsomed’s recent results, a discussion of Insulet’s drug delivery franchise (including both Neulasta and pipeline contracts), and finally margins and planned transition to positive EBIT in 2018. Overall, management is focused on the development of clinical data to sustain and differentiate its diabetes platform – which we will get a view of during the upcoming ADA meeting, and which will be supplemented by randomized clinical trials in coming years. Management was quite bullish on both near-term trends in its business as well as longterm opportunities – citing multiple planned product launches over the next three years. Reiterate OW, $41 PT."

For an analyst ratings summary and ratings history on Insulet Corporation click here. For more ratings news on Insulet Corporation click here.

Shares of Insulet Corporation closed at $30.36 yesterday.

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