Insulet shares flat after wider loss, revenue jump
Shares of medical devices maker Insulet Corp. (Nasdaq: PODD) are flat on news the Bedford, Mass.-based company widened its quarterly net loss but increased revenues.
The net loss for the quarter ended March 31 was $11.6 million, compared with a net loss of $6.9 million during the same three months of 2006, the company reported after Thursday’s close. Analyst estimates were unavailable, because Insulet went public on May 18.
On the plus side, revenue increased a blistering 900% to $2.0 million from $0.22 million in the first quarter of 2006.
“Our first quarter revenue growth demonstrates the growing market acceptance of our discreet and easy to use OmniPod System,” President and CEO Duane DeSisto.
Approved by the U.S. Food and Drug Administration in Jan. 2005, the OmniPod System consists of two parts: a small pod is worn directly on the body like a patch to pump insulin into the bloodstream, while a wireless handheld device programs it.
Insulet has high hopes for the OmniPod System, which is currently available only in the Eastern United States. The company is sponsoring a team of long-distance diabetic cyclists participating in the 3,043-mile Race Across America. The athletes are controlling their blood sugar levels by using the OmniPod System for proper insulin delivery.
However, marketing and sales expenses for the rose 88% to $8.2 million, compared with $4.4 million a year earlier, contributing to Insulet’s quarterly loss.
CEO DeSisto said that the company has reduced its per unit production costs while raising manufacturing capacity, and is working to expand third-party coverage for the OmniPod System.
Looking ahead, Insulet said it projects revenue in the range of $10 million to $12 million. However, the company anticipates having quarterly losses for the remainder of 2007.
In 2006, the World Health Organization estimated that at least 171 million people worldwide suffer from diabetes. Over 8 million Americans age 60 and older suffer from the disease, according to the American Diabetes Association.
At 1:50 p.m. ET shares were up $0.34, or 2%, to $14.46.
