Insulet reported its first-quarter 2016 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 that exceeded its expectations and completed the divestiture of its diabetes supplies business. As expected, it posted an earnings loss.
Shares of Insulet have fallen 1.6% in the two-day period through Monday since the company reported. The stock's price has swung considerably over the year, though its 10.2% rise over the one-year period through May 2 solidly beats the S&P 500's total return of 2.2%.
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Insulet's key Q1 numbers
Data source: Insulet.
Revenue of $81.2 million exceeded the company's guidance of $77 million to $80 million. Insulet does not provide earnings guidance.
What happened with Insulet this quarter?
- U.S. OmniPod revenue increased 28% to $50.7 million.
- International OmniPod revenue soared 307% to $15.4 million.
- Drug delivery revenue jumped 224% to $15.1 million. This rise was largely due to the success of Amgen's Neulasta Onpro kit, which includes Insulet's OmniPod technology, according to comments made by management on the analyst conference call. This product was approved by the FDA just before the start of last year.
- Completed divestiture of Neighborhood Diabetes supplies business.
Image source: Insulet.
What management had to sayInsulet CEO Patrick Sullivan shared on the conference call some additional good news regarding Amgen'sNeulasta Onpro kit:
Sullivan also commented on the call about the company's progress on key initiatives:
Insulet signed an agreement last quarter with Mode AGC (Automated Glucose Control LLC) to develop and incorporate the advanced artificial pancreas algorithm into its OmniPod System. It also signed a development agreement last quarter withEli Lillyfor OmniPod delivery of U200 concentrated insulin, which the company has stated significantly expands OmniPod's addressable market for type 1 and type 2 diabetes.
Looking aheadInsulet reaffirmed its full-year 2016 guidance and established Q2 guidance as follows:
Data source: Insulet. *Pro forma growth-excludes revenue growth contributed by Neighborhood Diabetes in 2015.
The article Insulet Pumps Out 69% Revenue Growth in Q1, Reaffirms 2016 Guidance originally appeared on Fool.com.
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