Shares in Insulet (NSDQ:PODD) rose today after the company met earnings expectations on Wall Street and beat sales estimates with its second quarter results.
The Billerica, Mass.-based company posted a net loss of -$7.8 million, or -13¢ per share, on sales of $109.8 million for the 3 months ended June 30, for bottom-line loss of -85% on sales growth of 26% compared with the same period last year.
Adjusted to exclude 1-time items, earnings per share were -13¢, in line with consensus on The Street, where analysts were looking for sales of $106.2 million.
“We are very pleased with our performance so far this year,” chairman & CEO Patrick Sullivan said in prepared remarks. “We demonstrated strong momentum across our business and made substantial progress on our commercial and operational strategies. In the second quarter, our 26% revenue growth exceeded our expectation, and we achieved a 110 basis point improvement in gross margin. We released additional positive results from our Omnipod Horizon system clinical trials during the quarter and are investing in innovation to further differentiate our product offerings in the marketplace.”
Insulet said it expects to post sales of$440 million to $450 million for the full year.
PODD shares were trading at $53.20 apiece today in morning activity, up 6.2%.
In July, Insulet and Ypsomed, which has been the exclusive distributor of the Omnipod insulin management system in Europe since 2010, announced that the arrangement is slated to end on June 30, 2018.
The companies reported that they could not agree on extending the contract based on the price set by Insulet.
Insulet said it will assume the distribution, sales and marketing activities for Omnipod across Europe after the contract expires in 2018. At that time, Ypsomed plans to develop a tubeless insulin pump system, the mylife YpsoPump, using the insulin pump that is already a part of its portfolio.
Until July 2018, Ypsomed remains the exclusive distributor of Omnipod across Europe.
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