Insulet Corp. (NASDAQ: PODD) hit its 52-week high on February 19 after the announcement of two partnerships that further strengthen its leadership in the continuous glucose monitoring market.
The Acton, Massachusetts-based company, which trades at just over $ 211 and a market capitalization of over $ 13 billion, may be too expensive for both investors and potential buyers. According to an article in the medical technology and diagnostics industry that was updated in mid-2019, the company is on the list of the 25 most attractive public acquisition targets in medical technology.
Individual investors must take into account the latest Insulet analyst forecasts. According to CNN Business, the company is classified as a hold by 18 analysts. Meanwhile, the 14 analysts offering a price target set the median at $ 185, with the high at $ 213 and the low at $ 125. The company reports fourth quarter and full year 2019 earnings on February 25, so this is certainly something to keep an eye on. Insulet’s sales and earnings exceeded expectations in the third quarter.
Insulet’s most recent alliances are with Abbott Laboratories (NYSE: ABT) and Dexcom Inc. (NASDAQ: DXCM). Both deals focus on Insulet’s Omnipod Horizon Automated Delivery System, which is being tested in the United States. Omnipod is merged with Abbott’s highly anticipated Freestyle Libre 2, which is awaiting approval from the Food and Drug Administration.
This agreement with Dexcom builds on the integration efforts of the two companies and officially plans to launch Omnipod.
Dexcom’s stock performance has been even better than Insulet’s for the past 52 weeks. The price rose by more than 185%. The San Diego-based company sells for over 265 high value. It has been valued with a buy, with 16 analysts assigning it a median target of $ 300, which is between a high of $ 316 and a low of 270 USD is. Dexcom closed at $ 291 on February 21.
At least part of the enthusiasm for Insulet and Dexcom must be the size and growth rate of the market for CGM. According to a report by Allied Market Research, it is expected to reach nearly $ 5 billion by 2024 and reach an average annual growth rate of almost 23% from 2018 to 2024. The monitoring systems enable patients to better treat diabetes by giving them real-time glucose levels and notifying them when they are approaching hypoglycemia. A major problem for manufacturers is the lack of reimbursement of the devices.
The International Diabetes Federation reports that around 463 million adults worldwide have diabetes. by 2045 this number will increase to 700 million. About 20% of people aged 65 and over suffer from diabetes. The disease causes more than 4 million deaths annually.
Disclosure: The author does not hold positions in the stocks mentioned in this article.
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