Back to top

Image: Bigstock

PODD Stock to Gain From Favorable RADIANT Trial Results for Omnipod 5

Read MoreHide Full Article

Insulet Corporation (PODD - Free Report) announced favorable RADIANT trial clinical data for its Omnipod 5 at the 18th International Conference on Advanced Technologies and Treatments for Diabetes (“ATTD”). Omnipod 5 is the only FDA-cleared, fully disposable pod-based automated insulin delivery ("AID") system. The RADIANT trial results demonstrate Omnipod 5 to be clinically efficient for people living with type 1 diabetes. The conference was held in Amsterdam, Netherlands.

PODD Stock’s Likely Trend Following the News

Following the announcement, PODD’s shares were flat at $265.82 at the after-market trading yesterday. The company’s solid innovation efforts and ongoing expansion of the Omnipod 5 platform are creating synergies. Henceforth, we expect the latest development to motivate market sentiment toward the PODD stock in the upcoming days. 

Insulet has a market capitalization of $18.67 billion at present. Going by the Zacks Consensus Estimate, the company’s earnings are likely to increase 33% in 2025 on an 18.1% improvement in revenues.

About PODD’s RADIANT Trial

The RADIANT study is the first randomized controlled trial to evaluate the direct transition from multiple daily injections (“MDI”) to an AID system in adults and children with type 1 diabetes. The study also assessed the safety and efficacy of an AID system paired with an Abbott FreeStyle Libre 2 family sensor. This included 188 people aged 4 to 70 years with type 1 diabetes and HbA1c levels of 7.5% to 11%, all of whom were using MDI with Continuous Glucose Monitoring (“CGM”) for at least three months prior. 

Participants began with an average HbA1c level of 8.1%. After three months, people who used the Omnipod 5 System improved their HbA1c by an average of 0.8% compared with those using MDI plus CGM, resulting in a final HbA1c of 7.2%. For those beginning with an HbA1c level above 8%, the benefit was even greater, with an improvement of 1% compared with MDI plus CGM. Hence, Omnipod 5 can reduce the risk of developing diabetes complications in the future, such as cardiovascular disease, kidney disease and eye problems.

Additionally, Omnipod 5 users spent an additional 5.4 hours per day with glucose levels in the target range (70-180mg/dL) compared with MDI plus CGM users. This was accompanied by significantly less time per day with high glucose levels and no increase in time spent with dangerously low glucose. No life-threatening acute events such as severe hypoglycemia or diabetes-related ketoacidosis were recorded in the three months. 

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Industry Prospects Favor PODD

Per a report by Towards Healthcare, the global insulin delivery system market size is calculated at $17.77 in 2024 and is projected to reach $38.09 billion by 2034. The market is expanding at a compound annual rate of 7.92% between 2024 and 2034. The increasing number of diabetic patients and technological advancements like automation, AI and machine learning are going to support the growth of the market.

Another Development by PODD

Earlier this month, Insulet made its Omnipod 5 AID system commercially available in Australia. Omnipod 5 is commercially available in Australia with Dexcom G6 and G7 CGM sensor compatibility. Meanwhile, in January, Omnipod 5 became available in five more countries, Italy, Denmark, Finland, Norway and Sweden, with both Abbott’s FreeStyle Libre 2 Plus and Dexcom G6 compatibility. 

PODD Stock’s Price Performance

In the past year, Insulet’s shares have risen 58.9% compared with the industry’s growth of 10.2%.

PODD’s Zacks Rank & Other Key Picks

Insulet currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader medical space are Masimo (MASI - Free Report) , Boston Scientific (BSX - Free Report) and Cardinal Health (CAH - Free Report) . At present, Masimo sports a Zacks Rank #1 (Strong Buy), whereas Boston Scientific and Cardinal Health carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Masimo’s shares have rallied 26.5% in the past year. Estimates for MASI’s 2024 earnings per share (EPS) have increased 1.2% to $4.10 in the past 30 days. MASI’s earnings beat estimates in each of the trailing four quarters, the average surprise being 17.1%. 

Estimates for Boston Scientific’s 2025 EPS have jumped 2.9% to $2.85 in the past 30 days. Shares of the company have surged 47.1% in the past year compared with the industry’s growth of 9.5%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.25%. 

Estimates for Cardinal Health’s fiscal 2025 EPS have increased 1.5% to $7.94 in the past 30 days. Shares of the company have jumped 17.5% in the past year against the industry’s 3.2% decline. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%. 

Published in