Insulet Pumps Out 38% Revenue Growth in Q4, Expects 30% Growth in 2016


Insulet reported its fourth-quarter and full-year 2015 earnings after the market closed on Thursday. The drug delivery company, which is a leader in tubeless insulin pump technology with its OmniPod System, posted revenue growth across all four of its product lines and that exceeded its expectations.

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Insulet's key Q4 numbers

Data source: Insulet.

For the full-year 2015, Insulet's revenue increased 12% year over year to $324.2 million. Operating loss for the year was $60.8 million, compared with an operating loss of $12.3 million in 2014. Net loss for 2015 was $73.5 million, or $1.29 per share, compared with net loss of $51.5 million, or $0.93 per share, in 2014.

Image source: Insulet.

For the quarter, Insulet had about $12 million of non-recurring expenses, including an approximate $9 million non-cash impairment charge associated with the sale of its Neighborhood Diabetes business to Liberty Medical LLC.

Revenue of $100.1 million in the quarter exceeded the company's guidance of $86 to $96 million. Insulet does not provide earnings guidance. Analysts were looking for an earnings loss of $0.26 per share on revenue of $91.89 million. Insulet comfortably beat revenue expectations, but fell short of the earnings consensus. However, the earnings "miss" was due to the non-recurring expenses of about $12 million.

What happened with Insulet this quarter?

  • U.S. OmniPod revenue increased 21% to $52.9 million.
  • International OmniPod revenue increased 16% to $15.4 million.
  • Drug delivery generated revenue of $14.7 million, vs. $800,000 for the prior-year period.
  • Neighborhood Diabetes revenue increased 16% to $17.1 million.
  • Closed the sale of its Neighborhood Diabetes supplies business in February 2016 to focus on faster-growing innovative products.
  • Signed an agreement with Mode AGC (Automated Glucose Control LLC) to develop and incorporate the advanced artificial pancreas algorithm into its OmniPod System.
  • Signed a development agreement with Eli Lilly for OmniPod delivery of U200 concentrated insulin, which the company states significantly expands OmniPod's addressable market for Type 1 and Type 2 diabetes.

What management had to sayInsulet's CEO Patrick Sullivan said in the earnings release:

Looking aheadInsulet introduced guidance for the first-quarter and full-year 2016 as follows:

Data source: Insulet. *Pro forma growth-excludes revenue growth contributed by Neighborhood Diabetes in 2015.

Going into earnings, analysts were estimating that Insulet would post a lossof $0.23 per share on revenue of $83.19 million in the first quarter, and a loss of $0.65 per share on revenue of $363.71 million in 2016. So, Insulet's revenue guidance falls short of the consensus for both the first quarter and full year.

The article Insulet Pumps Out 38% Revenue Growth in Q4, Expects 30% Growth in 2016 originally appeared on

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