Insulet Corp. (NSDQ:PODD) may be headed for greener pastures over the next few years, despite increased competition from some heavy hitters in the diabetes space, according to one Wall Street analyst.
Frederick Wise, an analyst at the investment bank Leerink Swann said in a note to investors today that he came away from last week’s American Diabetes Assn. annual meeting convinced that Insulet will meet the bank’s ambitious growth numbers for the Bedford, Mass.-based company.
“Post-ADA, we’re also inclined to think Insulet is well-positioned to defend market share despite potential competition from Roche/Medingo in late 2012/early 2013 in the U.S., helped not only by its combination pump/CGM product but also its upcoming next-generation pump launch expected late 2011/early 2012,” Wise wrote. “And with Medtronic now seeming to have de-prioritized its patch pump program—potentially removing a major near-to-medium term competitive threat—we feel even more comfortable that Insulet can meet or exceed our current ~33% projected 2010-2013 U.S. OmniPod sales growth CAGR.”
He added that, combined with the positive market conditions, a potential 2012 approval of a combination insulin pump and continuous glucose monitoring device would grow top-line growth for 2013 and beyond.
“This could drive growth longer term ahead of our current ~30% projection, which currently reflects virtually no incremental growth acceleration from an OmniPod/CGM product and only minimal growth acceleration from the next-generation stand-alone Pod,” Wise wrote.
Shares of Insulet have been steadily increasing since news of the company’s $63 million acquisition of Neighborhood Diabetes Inc., jumping 20 percent as of the company’s share price of $21.81 in mid-afternoon trading on Wall Street today.
Earlier this week, Insulet announced plans to offer $110 million principal amount of convertible senior notes due 2016, pursuant to SEC approval.