Insulet CEO Calls Omnipod 5 'Reliable' Before Voluntary Recall Announcement

Written by Emily J. Thompson, Senior Investment Analyst

Source: PRnewswire

Updated: Mar 18 2026

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PODD-4.53%

Should l Buy PODD?

Source: PRnewswire

CEO Confidence and Recall: On February 18, 2026, Insulet CEO Ashley McEvoy described Omnipod 5 as 'reliable' and a 'favorite pump,' but just two weeks later, the company announced a voluntary recall of thousands of units due to insulin leakage defects, resulting in a 6.9% drop in stock price.
Financial Performance and Market Demand: During the same earnings call, McEvoy highlighted strong demand for Omnipod 5 among type 1 and type 2 diabetes patients, which drove U.S. revenue growth above expectations, yet failed to mention any product quality issues, indicating a significant lapse in information disclosure.
Medical Risks and Compliance Issues: The recall notice revealed that insulin leakage could lead to diabetic ketoacidosis, a serious medical emergency, underscoring potential risks to Insulet's product safety and possibly affecting future market trust.
Shareholder Rights and Legal Action: Following the stock price decline, Insulet shareholders are encouraged to submit information to discuss their legal rights, reflecting strong investor concern regarding the management's transparency and accountability regarding product quality issues.

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Analyst Views on PODD

Wall Street analysts forecast PODD stock price to rise

19 Analyst Rating

18 Buy

1 Hold

0 Sell

Strong Buy

Current: 208.220

Low

316.00

Averages

375.83

High

450.00

Current: 208.220

Low

316.00

Averages

375.83

High

450.00

Truist

Buy

maintain

2026-03-13

Reason

Truist

Price Target

AI Analysis

2026-03-13

maintain

Buy

Reason

Truist notes that shares of Insulet are trading down post-market following an 8-K noting a Voluntary Device Correction for certain lots of Omnipod 5. Against the backdrop of intensifying competition in the patch pump category, the headline is an incremental negative and could be used as a counter selling point by competition, the firm argues. Truist notes that while there were 18 reports of serious adverse events disclosed by the company including hospitalization and DKA, the issue has been associated with zero deaths and should have a very manageable financial impact. The company indicated there is no change to guidance, and expenses to remediate this issue will be excluded from non-GAAP performance. In an unforgiving tape, the firm thinks the negative stock reaction appears worse than any realistic financial or patient market share impact. Truist reiterates a Buy rating on the name with a price target on the shares.

Citi

Buy

downgrade

$345 -> $338

2026-03-11

Reason

Citi

Price Target

$345 -> $338

2026-03-11

downgrade

Buy

Reason

Citi lowered the firm's price target on Insulet to $338 from $345 and keeps a Buy rating on the shares. The firm adjusted targets in the medical technology group post the Q4 reports. Sector fundamentals remain "healthy" despite the recent volatility, the analyst tells investors in a research note. Citi's top picks are iRhythm and Medtronic.

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About PODD

Insulet Corporation is a medical device company. It is primarily engaged in the development, manufacture and sale of its continuous insulin delivery systems for people with insulin-dependent diabetes. The Omnipod System includes the Omnipod 5 Automated Insulin Delivery System (Omnipod 5), the Omnipod DASH Insulin Management System, and the Omnipod Insulin Management System. The Omnipod platform offers continuous insulin delivery that provides various benefits of insulin pump therapy in a way without the need for external tubing required with conventional pumps. The small, lightweight, self-adhesive disposable tubeless Omnipod device (Pod), can be worn in multiple locations, including the abdomen, hip, back of upper arm, upper thigh, or lower back, and delivers insulin into the body through a small flexible tube. It also produces pods for Amgen for use in the Neulasta Onpro kit, a delivery system for Amgen’s Neulasta to help reduce the risk of infection after intense chemotherapy.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Insulet Appoints New Chief Commercial Officer

2 hours agoNewsfilter

Executive Appointment: Insulet Corporation has appointed Mike Panos as Chief Commercial Officer, overseeing the global commercial organization and reporting directly to CEO Ashley McEvoy, aiming to enhance the company's commercial capabilities to seize market growth opportunities.
Extensive Experience: Panos brings 30 years of commercial leadership experience in the medical technology sector, having held multiple senior roles at Stryker, where he successfully drove market expansion and sustained double-digit growth, which is expected to contribute strategically to Insulet's growth.
Market Opportunity: Insulet is positioned for significant growth driven by strong clinical outcomes and customer-centric innovation, and Panos's leadership is anticipated to accelerate the adoption of automated insulin delivery globally, enhancing the company's market share in diabetes management.
Strategic Execution: Panos will be responsible for driving commercial strategy and execution, expanding market access, and supporting growth into new patient populations, further solidifying Insulet's leadership position in the global diabetes management market.

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Insulet Corp. Stock Drops After Omnipod 5 Insulin Leakage Defect Disclosure

5 days agoPRnewswire

Stock Decline: Insulet Corp. shares fell approximately 6.9% following the March 12, 2026, 8-K filing that disclosed a design defect in the Omnipod 5 insulin pods, indicating investor concerns over the company's transparency.
Defect Impact: The voluntary medical device correction affects about 1.5% of annual production, with the defect potentially causing insulin leakage that could lead to hospitalization and diabetic ketoacidosis (DKA), posing a serious health risk to patients.
Serious Adverse Events: The defect is linked to eighteen serious adverse events, and the FDA's medical device correction database has cataloged this action, highlighting the severity of the issue and its potential impact on the company's reputation.
Management Accountability Investigation: Levi & Korsinsky is investigating whether Insulet and its executives were aware of the defect during the February 18, 2026, earnings call, where the CEO described Omnipod as demonstrating “reliability and consistency,” contrasting sharply with the subsequent disclosure.