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Insulet (PODD) to Expand Base in Malaysia With New Facility

Insulet Corporation PODD, in line with its market expansion strategy, plans to construct its new manufacturing facility in Johor Bahru, Malaysia. The company will host the groundbreaking ceremony of this project on Jun 2.  Insulet expects the facility to be operational by the middle of 2024 and strengthen its global manufacturing capabilities.

The Manufacturing Facility in Detail

This new manufacturing facility will have approximately 400,000 square feet of space. Insulet aims to produce Omnipod Insulin Management System in the facility.

Insulet plans to invest approximately $200 million over five years and hire more than 500 full-time employees once the facility is operating at full capacity.

According to Insulet, this is going to be an important step to further diversify its footprint globally.

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Zacks Investment Research


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Insulet also plans to source environmentally responsible and resource-efficient materials for the new facility. Per the press release, the architectural design includes sustainable elements that qualify for Green Building Initiative (GBI) and Leadership in Energy and Environmental Design (LEED) certification.

Insulet officials will be joined by several Malaysian dignitaries including the Malaysian Investment Development Authority, the Ministry of Internal Trade and Industry, Iskandar Regional Development Authority, Iskandar Puteri City Council, and members of the U.S. Embassy in Malaysia for the groundbreaking ceremony.

High Global Market Potential

Going by a Global Market Insights report, Insulin delivery devices’ market size surpassed $14.7 billion in 2021 and is estimated to register over 7% CAGR between 2022 and 2028. Per the report, the growing prevalence of diabetes is the key factor promoting market growth.

Considering the huge prospect, Insulet’s latest decision to invest in an emerging economy like Malaysia seems well-timed.

Insulet’s Market Expansion at a Glance

In terms of Insulet’s strategy to grow its global addressable market, Insulet recently rolled out Omnipod DASH through targeted geographic expansion by entering the Asia Pacific region through Australia and expanding into Turkey. The company recently launched the Omnipod DASH in Saudi Arabia and looks to enter the United Arab Emirates. Together, these countries expand Insulet’s total addressable market by nearly 1 million.

The company is also progressing with the introduction of Omnipod 5 in international markets. During the first quarter, the CE mark submission for the Omnipod 5 continued to proceed well.

Price Performance

Shares of the company have lost 21.6% in a year compared with the industry's fall of 22.1%.

Zacks Rank and Key Picks

Insulet currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader medical space are UnitedHealth Group Incorporated UNH, Medpace Holdings, Inc. MEDP and Alkermes plc ALKS.

UnitedHealth, having a Zacks Rank #2 (Buy), reported first-quarter 2022 earnings per share (EPS) of $5.49, which beat the Zacks Consensus Estimate by 1.7%. Revenues of $80.1 billion outpaced the consensus mark by 14.2%.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

UnitedHealth has an estimated long-term growth rate of 14.8%. UNH’s earnings surpassed estimates in the trailing four quarters, the average surprise being 3.7%.

Medpace reported first-quarter 2022 adjusted EPS of $1.69, which surpassed the Zacks Consensus Estimate by 34.1%. Revenues of $330.9 million outpaced the Zacks Consensus Estimate by 1.1%. It currently has a Zacks Rank #2.

Medpace has a historical growth rate of 27.3%. MEDP’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.1%.

Alkermes reported first-quarter 2022 adjusted EPS of 12 cents, which surpassed the Zacks Consensus Estimate of a penny. Revenues of $278.6 million outpaced the Zacks Consensus Estimate by 6.2%. It currently carries a Zacks Rank #2.

Alkermes has an estimated long-term growth rate of 25.1%. ALKS’ earnings surpassed estimates in the trailing four quarters, the average surprise being 350.5%.


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