Canaccord Adams downgraded the maker of wearable
insulin pumps on Friday June 20th, based on three near-term concerns:
a) data points suggesting that diabetes educators at select major
centers are frustrated with out-of-box failures and advising against initialization of OmniPod therapy;
b) a manufacturing issue
causing device failures has been resolved, but we expect a negative impact to gross margins in Q2/08; and
c) expectations for
H2/08 revenues and gross margin improvements may be too aggressive given the near-term hurdles for the company and timeframe necessary to complete scale-up of manufacturing.
The next catalyst for Insulet will be Q2/08 financial results, expected August 2008.