Insulet (PODD) Wells Fargo 21st Annual Healthcare Conference summary

Market trends and guidance

• Lowered guidance attributed to higher attrition and lower utilization in type 2 diabetes, softness in new starts, and less pricing, with two-thirds of the impact from type 2 retention issues.

• Type 2 market seen as a major growth opportunity, with a $28 billion TAM and low AID penetration.

• Guidance for 2026 assumes no improvement from Q2 trends; impact from corrective actions expected by end of year and more significantly in 2025.

• U.S. growth projected at 9–14% exit rate in 2026, with international at 19–24%; growth expected to moderate as new customer start rates flatten.

• Operating margin goal of 100 basis points per year maintained, supported by manufacturing efficiencies and disciplined cost management.

Retention and corrective actions

• Elevated attrition in type 2 segment identified late in Q2; root causes analyzed and five corrective actions implemented, including improved sampling and sales force incentives.

• Focus on nailing the first 90 days for new patients, with enhanced customer service and clinical retention specialists deployed.

• Omnipod Discover platform launched to boost patient and clinician engagement, showing improved retention in limited market review.

• Attrition for type 2 is more than double type 1, but not as high as 40%; blended attrition rate is in the mid-teens.

• Competitors not seeing similar retention issues, attributed to Insulet's earlier entry and larger type 2 base.

Product pipeline and innovation

• Three major programs: new algorithm this year, Omnipod 6 in 2025, and fully closed loop for type 2 in 2028.

• Omnipod 6 will offer improved time in range, less bolusing, and broader wear flexibility.

• Fully closed loop for type 2 in pivotal trial, showing significant improvements in glycemic control and user experience, with no manual intervention required.

• Regulatory clearance for Omnipod 6 algorithm received; systems integration and validation ongoing for launch.

• Continued investment in pipeline and innovation, with additional undisclosed projects underway.