PODD

Insulet Corp

Healthcare


Presented:09/08/2016
Price:$43.63
Cap:$2.50B
Current Price:$230.07
Cap:$16.13B

Presented

Date09/08/2016
Price$43.63
Market Cap$2.50B
Ent Value$1.80B
P/E RatioN/A
Book Value$0.48
Div Yield0%
Shares O/S57.20M
Ave Daily Vol575,313
Short Int7.97%

Current

Price$230.07
Market Cap$16.13B
Insulet Corp. is an innovative medical device company, which engages in the development, manufacture, and marketing of an insulin infusion system for people with insulin-dependent diabetes. It's current product offering consists of diabetes supplies, including the OmniPod System as well as other diabetes related products and supplies such as blood glucose testing supplies, traditional insulin pumps, pump supplies, and pharmaceuticals. The company was founded by John L. Brooks III and John T. Garibotto in July 2000 and is headquartered in Billerica, MA.

Publicly traded companies mentioned herein: Cellnovo Group SA (CLNV FP), Hologic Inc (HOLX), Insulet Corporation (PODD), Johnson & Johnson (JNJ), Medtronic PLC (MDT), Novo Nordisk A/S (NVO)

Highlights

The presenter is long shares of Insulet Corp (PODD), and believes there is meaningful upside potential for shareholders of the company as the management continues to execute a successful turnaround of the business. PODD’s OmniPod is a better insulin delivery system than multiple manual injections and the diabetes market is an extremely large global market ($20+ billion). Additionally, there is optionality around the use of PODD’s technology to deliver other drugs, as has been demonstrated via Amgen’s On-body Injector for Neulasta (pegfilgrastim). While investors need to be comfortable with the stock trading at a seemingly lofty multiple to sales (7x 2016 Street estimates), he is confident that PODD’s tubeless pump technology is unique and revenue growth can outpace Street estimates over the next 2 - 3 years, leading to 35% upside based on 6.5x $530 million of revenue in 2018. And, there is also the potential for the company to become an acquisition target within the investment horizon.

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Idea Discussion

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