Insulet Corporation reported unaudited consolidated earnings results for the first quarter ended March 31, 2013. First quarter 2013 revenue increased 20% to $57.4 million, compared to $47.8 million in the first quarter of 2012. The increase in revenue was driven by sales of the new OmniPod both in the US and in international markets. Operating loss was $6.2 million, compared to an operating loss of $10.9 million in the first quarter of 2012, an improvement of 43%. Net loss was $10.7 million, or $0.20 per share, compared to a net loss of $14.8 million, or $0.31 per share, for the first quarter of 2012. Loss before income tax was $10.53 million against $14.73 million a year ago. Net loss was $10.66 million or $0.20 basic and diluted per share against $14.78 million or $0.31 basic and diluted per share a year ago. For the second quarter of 2013, the company expects that revenue will be in the range of $59 to $62 million. Gross margins expanded by approximately 100 basis points to 44% as compared to first quarter of 2012 and the company expects gross margin should remain at this level in the second quarter. Operating expenses are expected to be in the range of $32 million to 34 million per quarter for the remainder of the year. For the year ending December 31, 2013, the company reiterates its estimate that revenue will be in the range of $240 to $255 million. The company remains confident that it will achieve 60% plus gross margins on its US OmniPod business by year-end and 50% plus gross margin on a consolidated basis.

Insulet Corporation announced that it has entered into an agreement with Eli Lilly and Company in which Insulet will develop a new version of the OmniPod insulin pump specifically designed to deliver Humulin(R) R U-500 insulin, (regular U-500 [Concentrated] insulin human injection, USP [rDNA origin]), a concentrated form of insulin used by people with highly insulin resistant type 2 diabetes. Insulet is partnering with Eli Lilly and Company on the clinical development program to evaluate the safety and efficacy of the combined delivery system. As the incidence of severe insulin resistance continues to rise, more and more people with type 2 diabetes are requiring significantly higher doses of insulin in order to control their blood glucose. This new version of the OmniPod System would be the first insulin pump designed with specific feature modifications to deliver Humulin(R) R U-500 insulin. Given the rapid increases in rates of obesity and corresponding increases in daily insulin requirements, the new delivery system, if approved, would represents a significant and growing opportunity for people with highly insulin resistant type 2 diabetes to potentially better manage their disease with such a product.

Insulet Corporation, Q1 2013 Earnings Call, May 06, 2013