Insulet beats second-quarter profit estimates on strong demand for insulin pumps

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(Reuters) -Medical device maker Insulet beat Wall Street estimates for second-quarter profit and revenue on strong demand for its wearable insulin pumps, sending its shares up nearly 10% in premarket trading on Thursday.

Insulet has been benefiting from the expanded approval for its automated insulin delivery device, Omnipod, which offers a convenient alternative to conventional pumps with external tubing by eliminating the need for multiple daily injections for people with insulin-dependent diabetes.

Its Omnipod 5 device was cleared for use in both type 1 and type 2 diabetes patients last year.

The company now expects its annual revenue to grow in the range of 24% to 27% from a year earlier, compared with its previous projection of 19% to 22%, betting on strong demand for Omnipod 5.

The results suggest “Insulet’s momentum is not only continuing, but accelerating”, Baird analyst Jeff Johnson said.

The company projects annual Omnipod revenue growth of 25% to 28%, up from a 20% to 23% growth forecast previously.

Its Omnipod devices brought in sales of $639 million in the second quarter, above analysts’ estimate of $606.15 million, according to data compiled by LSEG.

On an adjusted basis, the company earned $1.17 per share, beating estimates of 93 cents.

Total revenue jumped 33% to $649.1 million for the quarter ended June 30, compared with estimates of $612.22 million.

(Reporting by Mariam Sunny in Bengaluru; Editing by Devika Syamnath)