IPO Filing: Insulet Corp, A Personal Diabetes Device

Insulet Corp  has filed to come public via an IPO under the ‘PODD’ ticker on NASDAQ. No terms have been set, but it lists $86.25 million as the proposed amount to be sold as far as filing purposes.  J.P.Morgan and Merrill Lynch are designated as the lead underwriters and Thomas Weisel and Leerink Swann are also listed as co-managers.

This company makes a pain free personal diabetes manager with monitor under the OmniPod (R) brand.  It is a medical device company that develops, manufactures and markets an innovative, discreet and easy-to-use insulin infusion system for people with insulin-dependent diabetes.  Here is what the company says about itself:  Our proprietary OmniPod Insulin Management System, which consists of our OmniPod disposable insulin infusion device and our handheld, wireless Personal Diabetes Manager, is the only commercially-available insulin infusion system of its kind. Conventional insulin pumps require people with insulin-dependent diabetes to learn to use, manage and wear a number of cumbersome components, including up to 42 inches of tubing. In contrast, the OmniPod System features only two discreet, easy-to-use  devices that eliminate the need for a bulky pump, tubing and separate blood glucose meter, provide for virtually pain-free automated cannula insertion, communicate wirelessly and integrate a blood glucose meter. We believe that the OmniPod System’s unique proprietary design offers significant lifestyle benefits to people with insulin-dependent diabetes.

The US FDA approved the OmniPod in January 2005 and they began selling this in October 2005.  It lists that as of December 31, 2006 it has sold to approximately 1,200 people in the US.  As of the 9-months ended September 30, 2006, they had $2.02 million in revenues and had a net loss of $25.3 million.  It plans to use funds to expand its manufacturing capabilities, and it currently manufactures this at a loss on each unit.  It anticipates completing its automated manufacturing line in 2008.

Despite the fact that they are a money loser and will continue lose money, this has the key medical buzzword that investors love to see: DIABETES.  This won’t come without any controversy because of limited success, but it at least is in the right sector.

Jon C. Ogg
February 14, 2007