Insulet, the maker of the tubeless Omnipod insulin pump, has seen its stock drop nearly 50% year to date due to execution issues in onboarding Type 2 diabetes patients in the United States. The company reported second-quarter revenue of $801.7 million, up 23.5% year-over-year, beating Wall Street expectations, and forecasts full-year earnings growth exceeding 30%. The stock trades at approximately 21x forward earnings, its lowest valuation multiple in a decade, with a potential price target of $196 representing more than 30% upside. Contrary to investor fears, GLP-1 weight loss drugs are expanding Insulet’s future patient pool rather than cannibalizing it, as these medications bring more Type 2 diabetes patients into active treatment, many of whom will ultimately need insulin delivery devices.
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