The diabetes devices maker, known best for its tubeless OmniPod insulin pump, posted an 18.5% leap in Q4 revenues as the company slashed losses by more than 75%.
PODD shares jumped 7% in morning trading, going for $48.34 apiece as of about 1:05 p.m. today as losses beat analysts’ consensus estimates by 5¢ per share.
"2013 was one of the most exciting years in Insulet’s history, and I am proud of all that our team accomplished," president & CEO Duane DeSisto said in prepared remarks. "We launched the smaller, lighter OmniPod, transitioned all of our OmniPod customers to the new product in less than 6 months and established manufacturing operations capable of producing nearly 1 million pods per month."
In total the company reported losses of $2.5 million, or 4¢ per share, on sales of $68.5 million during the 3 months ended December 31. Analysts were expected losses along the lines of 9¢ per share. The recent quarter’s results compared with losses of $10.2 million, or 21¢ per share, on sales of $57.8 million during the same period in 2012.
Sales of Insulet’s OmniPod system have soared in recent months, driven in part by uptick in pediatric patients, DeSisto said during last month’s JP Morgan conference in San Francisco. Insulet’s under-10 patient population grew by 100% in 2013 and the under-18 population grew 60%.
"It’s unfortunate that it’s just a young group of people, but that disease is out there," DeSisto said. "If you’re a kid and you’ve been on this product, you are never going on a tube pump. If we don’t do a good jobs you may go back to shots, but you are never going on a tube pump."
For the full year of 2013 Insulet reported losses of $45 million, or 83¢ per share, on sales of $247.1 million, beating analysts’ per-share projection by 4¢. That compared with losses of $51.9 million, or $1.08 per share, on sales of $211.4 million during 2012.
In the company’s annual report Insulet also noted that it had come under the magnifying glass of the Office of the Massachusetts Attorney General for suspected improper sales practices. Insulet in October 2013 received a letter accusing the company of inappropriately providing automatic prescription refills for MassHealth patients through Neighborhood Diabetes, a direct-to-consumer diabetes management services provider that Insulet acquired in 2011.
Insulet maintained that its refill practices were "appropriate and consistent with applicable laws," but couldn’t provide guidance on a potential outcome.
"We do not believe that a negative outcome is probable at December 31, 2013," according the company’s annual 10-k filing.
Looking forward, Insulet expects 30% growth year-over-year in OmniPod sales. The company projected 2014 revenues in the range of $295-$315 million, with Q1 sales estimated at $67-$71 million.