Insulet (PODD) Bernstein Insights: Healthcare Leaders and Disruptors – 3rd Annual Healthcare Forum summary

Business performance and market opportunity

• Achieved strong Q2 results with 23% organic growth, 20% U.S. Omnipod growth, 33% international Omnipod growth, and 140 basis points of operating margin expansion.

• Markets for automated insulin delivery (AID) remain large and under-penetrated, with only 5% of insulin-intensive type 2 diabetes patients in the U.S. using AID.

• International business grew over 30% YoY, with 75% of the OUS DASH base converted to Omnipod 5 and new launches in Spain, Germany, and Canada.

• High retention rates after 90 days for both type 1 and type 2 customers support a durable business model.

• Type 2 IIT penetration is targeted to reach 10%-15% by 2028, with potential to go significantly higher, inspired by CGM adoption rates.

Strategic initiatives and corrective actions

• Four key actions to improve type 2 retention: revamping the sampling program, adjusting field incentives, scaling support teams, and accelerating Omnipod Discover rollout.

• Sampling workflow improvements ensure customers are supported and ready for long-term use.

• Field incentives now emphasize durable starts and early customer success, with best practices shared across teams.

• Customer service and clinical retention specialists provide targeted support during the first 90 days, proven effective in pilot programs.

• Omnipod Discover, a digital health platform, will be fully launched by year-end to enhance engagement and retention.

Innovation pipeline and product development

• Recent launches include a second-generation algorithm for tighter glycemic control and FreeStyle Libre 3 Plus integration.

• Omnipod 6, launching in 2027, will offer a new algorithm, improved wear flexibility, and updatable pods for faster innovation.

• Type 2 fully closed loop system, in pivotal study, targets a disruptively simple user experience and broader primary care adoption by 2028.

• Continued algorithm updates and hardware innovations are planned through 2029 and beyond.