Insulet beats quarterly profit estimates on insulin pump demand

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(Reuters) -Insulet beat first-quarter profit estimates on Thursday, buoyed by strong demand for its wearable insulin pumps, sending shares up 7% in extended trading.

Insulet produces and sells Omnipod, an automated insulin delivery device that operates without external tubing, unlike conventional pumps, and eliminates the need for multiple daily injections for people with insulin-dependent diabetes.

The company’s Omnipod 5 device is the first system to receive clearance for managing both type 1 and type 2 diabetes.

Insulet is addressing investor concerns over possible impacts on its insulin pump sales due to the surging demand for the latest diabetes and weight-loss drugs, categorized as GLP-1s.

The company now expects its annual revenue to grow between 19% and 22%, compared with its previous projection of 16% to 20%.

The Acton, Massachusetts-based company’s total revenue increased 28.8% to $569 million for the quarter ended March 31, compared with analysts’ estimates of $543.4 million, according to data compiled by LSEG.

Sales of Omnipod insulin pumps reached $554.1 million in the first quarter, compared with analysts’ estimates of $533.3 million.

On an adjusted basis, the company earned $1.02 per share, above analysts’ average estimate of 80 cents per share.

Meanwhile, Insulet’s larger peer, Dexcom, reported first-quarter sales that beat expectations earlier this month and reiterated its annual sales forecast.

(Reporting by Christy Santhosh in Bengaluru; Editing by Mohammed Safi Shamsi)