Analyst Note
| Debbie S. Wang |Insulet's second-quarter performance demonstrated strength on the top line in the United States as the new Omnipod 5 enters full commercial launch, but a significant jump in operational expense startled us. Overall, the two factors were largely a wash, and we’re leaving our fair value estimate unchanged. We remain confident in Insulet’s narrow economic moat, which is supported by intangible assets as we see this firm accelerate its innovation. Though Insulet was not the first to introduce the hybrid closed loop, it did manage to develop and launch its new pump with comparable functionality within a reasonable period of time. The firm was also the recipient of a lucky break when Medtronic ran into regulatory issues with its 670G pump, which has delayed U.S. approval of its next-generation 780G.