Insulet Corporation (PODD)
Q1 2013 Earnings Call
May 06, 2013, 05:00 pm ET
Brian Roberts - CFO
Duane DeSisto - President & CEO
Danielle Antalffy - Leerink Swann
Kim Gailun - JPMorgan
William Plovanic - Canaccord Adams
Ben Andrew - William Blair & Company
Tom Gunderson - Piper Jaffray & Co.
Robert Goldman - CL King & Associates
Suraj Kalia - SMH Capital
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Mr. Brian Roberts, Chief Financial Officer, you may begin your conference.
Thank you. Good afternoon everyone and thank you for joining us for our first quarter 2013 conference call. I am Brian Roberts, Chief Financial Officer of Insulet and joining me on the call today is Duane DeSisto our Chief Executive Officer.
Before we get started, I would like to remind everyone that our discussion today may include forward-looking statements as defined under the Securities Laws. We intend these forward-looking statements to be covered by the Safe Harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act and are making these statement for purposes of complying with the Safe Harbor provisions.
These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies, prospects which are based on the information currently available to us and on assumptions we have made. There are risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements.
Information concerning the company’s potential risks and uncertainties is highlighted in the company’s press release issued earlier today and in the Risk Factors section of the company’s SEC filings including the company’s annual report on Form 10-K for the year ended December 31, 2012. These risk factors apply to our oral and written comments. We assume no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise. I would also like to remind you that the guidance we are offering today represents a point-in-time estimate of our future performance. You will find a link to the webcast of this call as well as to today’s press release at myomnipod.com in the investors section.
And now, I'll turn the call over to Duane.
Thanks, Brian. Good afternoon everyone and thank you for joining us today. 2013 is off to a great start as we continue to make significant progress across all aspects of the business highlighted by the launch of our new OmniPod; our second consecutive quarter of operating cash profitability and our announcement just last Thursday of our plans to develop a new version of the OmniPod, specifically designed to work with Eli Lilly’s Humulin U-500 insulin.
First quarter revenue grew by 20% year-over-year to $57.4 million. In late February, we transitioned to all new customer starts for the new OmniPod and the initial feedback has been excellent. Customers and healthcare professionals have commented not only on the reduced size of the smaller and lighter pod, but also the ease-of-use and the changes made to the insulin onboard calculation.
The results have been impressive. Since March 1st, new referrals and shipments have increased by more than 40% as compared to the prior year and in April these metrics were up by more than 50% over April of 2012. As anticipated, the launch of the new OmniPod provides our commercial team with an opportunity to engage healthcare professionals, who for a variety of reasons have not been significant prescribers in the past. While the launch is in its early days, we are thrilled by the number of doors that seem to be opening at endocrinologist practices across the country.
For example, a significant practice in the Northeast region that averaged just one new patient addition per month in 2012 has added over 20 patients in just the last 60 days. In the Mid-Atlantic, one of the most recent patient additions is a clinical diabetes educator at a large practice, while previously intrigued by the OmniPod’s tubeless design, she was turned off by the insulin on board calculation methodology and by the size of the old OmniPod.
Once she tried the new OmniPod, she was hooked. With the CGM board the practice has dramatically ramped up its referrals and OmniPod is becoming the pump of choice across the practice. And yet another example a pediatric center in the South would not typically recommend the old OmniPod as they believe it to be too big and bulky for kids.
Now, with the new 34% smaller OmniPod, the practice is starting kids on the [sailing] [ph] trial using the new OmniPod. The feedback of this trial program has been exceptional as kids and parents love the size and the automatic insertion feature of the new product. The result is that the number of referrals in just last month was more than double from what we usually would receive in a quarter.
These are just a few examples of stories we are hearing across the country. Our territory reps are telling us stories of new practices and educators prescribing the OmniPod. In fact over 10% of our new shipments since launch have come for practices that did not have a shipment in 2012.