Insulet is upping its guidance after a strong first quarter, though ongoing recalls continue to cast a shadow for investors.
The insulin device maker charted sales growth of 30.1% in constant currencies, hitting $761.7 million for the quarter. This went beyond the high end of Insulet’s guidance range of 25% to 27% growth.
The company is now guiding total sales growth of 21% to 23% for the year on a constant currency basis, up from 20% to 22% in its previous update.
Nearly all its sales ($758.4 million in Q1) come from its Omnipod range, a wearable insulin pump that delivers the medicine without the need for daily injections.
Much of this growth trajectory came from outside the U.S., with International Omnipod sales hitting $242.9 million, up 45.2% in constant currencies.
“We are generating robust growth across our largest and most established European markets including the U.K., France and Germany, all of which delivered strong first quarter new customer starts, driven in part by our focus on new prescriber activation”, Ashley McEvoy, Insulet’s CEO, said on a call with investors.
Growth rates in the U.S., where most of its sales came from, were not quite as strong, hitting $515.6 million, an increase of 28.3%.
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The company’s latest product is the Omnipod 5—though this device hit turbulence during the first quarter when the company began recalling specific U.S. lots in March after discovering a manufacturing defect that could cause them to leak insulin.
This recall was expanded a month later. As of last month, in the latest recall update, there were 29 serious injuries associated with the issue.
McEvoy said in response to questions from analysts that the recall “was an absolute tough moment for us,” but that “patient safety is always our number one priority.”
He said Insulet is “monitoring and investigating customer complaints,” `but that he does “not believe that the medical device correction did have an impact on […] the quarter.”
He added that “in our industry, it’s not possible to eliminate all risks, but what matters most is how issues are identified and addressed. And in this case, we got after it early. We’ve implemented targeted corrective actions, and we are going to continue to strengthen and invest in our quality systems and operating controls.”
The company is also looking ahead. McEvoy said on the call that Insulet is “increasing investments this year to advance our next generation of products,” as it eyes a 2027 launch of its sixth generation Omnipod that will be paired with its third-generation algorithm.
The company ended the day down 9.7% at the end of trading Wednesday, May 6.
