Insulet raises annual revenue forecast on strong demand for insulin pumps

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(Reuters) – Insulet raised its annual revenue growth forecast on Thursday, banking on strong demand for its wearable insulin pumps.

Shares of the medical device maker rose about 2.5% to $251 in extended trading.

The company now expects its annual 2024 revenue to grow between 20% and 21%, up from its previous forecast of 16% to 19% growth, driven by strong sales of its Omnipod devices.

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

The U.S. Food and Drug Administration in late August approved the expanded use of the company’s Omnipod 5 device for patients with type 2 diabetes, making it the first such system to be cleared for use in both type 1 and type 2 diabetes.

In September, the company said that it expects new customer additions to be stronger in the second half of this year compared to the same period last year.

The Acton, Massachusetts-based company’s total revenue jumped 25.7% to $543.9 million for the quarter ended Sept. 30, beating analysts’ estimate of $519.03 million, according to data compiled by LSEG.

The company expects Omnipod revenue growth in the range of 21% to 22% for 2024.

Sales of Omnipod insulin pumps came in at $533.6 million for the third quarter, compared with analysts’ estimate of $513.83 million.

On an adjusted basis, the company earned 90 cents per share in the quarter, above analysts’ average estimate of 76 cents per share.

(Reporting by Sruthi Narasimha Chari in Bengaluru; Editing by Mohammed Safi Shamsi)