Insulet Bernstein Insights: Healthcare Leaders and Disruptors – 3rd Annual Healthcare Forum

Yeah, it's been an incredible 10-year journey, Lee. I think what's most incredible are the things that haven't changed, which are also the things that make the next decade Insulet's best. Insulet was founded by a father who looked at injections and tubed insulin pumps and said there had to be a better way. That drive to find a better way is what fuels all of us at Insulet, and me, every day. We show up in order to find innovative ways to deliver better technology, to go to market like pioneering into the pharmacy channel. That spirit just flows through who we are. That hasn't changed. It is at least as inspiring today as it was a decade ago.

Similarly, despite the technology renaissance in AID over the last five years, and it has been remarkable what we are now able to do for people with diabetes, the markets that we serve remain large and under-penetrated. There are 1.8 million people who live with type 1 diabetes here in the U.S., and less than half benefit from AID, despite it now being recommended in the strongest possible way in American Diabetes Association guidelines as standard of care. There are 2.5 million people who live with insulin-intensive type 2 diabetes in the U.S., and about 5% of them benefit from AID, despite it now being recommended for consideration in standards of care. In just the global markets that we serve, there are almost 4 million people who live with type 1 diabetes, and only about 25% of them have the benefit of AID, again, despite strengthening guidelines.

Lee, despite all the progress of the last five, 10 years, the markets that we are in remain large, under-penetrated, and there is just enormous unmet need. Those things have not changed. But a few things have, and we are a much larger, much more sophisticated organization than we were when I joined. We now serve 26 countries around the world, 20 with Omnipod 5. We have built manufacturing scale that we can invest in ahead of demand to be ready to deliver growth. This year, we are on track to add more customers this year than we had when I joined the company, and that requires scaled, sophisticated manufacturing capabilities. We have the most exciting innovation pipeline we have ever had with Omnipod 6 and type 2 fully closed loop and more to come.

Lee, when we look at our drive to improve lives, the large under-penetrated markets, and the sophisticated capabilities we have to drive impact at scale, our next decade is the best one.

Yeah. Lee, maybe two things. One, before I jump into type 2, as you said, we delivered a very strong second quarter, and the fundamentals of the business and the growth that we're driving are significant. You called out more than 30% revenue growth international and more than 20% customer base growth globally. We're proud of the fundamentals of growth that we're executing. We remain really excited about the long-term type 2 opportunity. As I said a few minutes ago, there's more than 2.5 million people who live with insulin intensive or basal bolus requiring type 2 diabetes here in the U.S., and only about 5% of them have the benefit of automated insulin delivery technology today.

What I see out in the real world when I'm out with customers and our team, is just the incredible diversity of people who live with type 2 diabetes whose lives are being transformed by AID. I heard about a 100-year-old woman in Maine who was using Omnipod 5. I've heard about folks who live in nursing homes, who are benefiting from Omnipod 5. Lee, that unmet need is enormous, and the diversity of people whose lives we're changing is tremendous. We look at that opportunity and the proven clinical impact and the fact that we drove 40% of our new customer starts in Q2 from type 2, and what we see is large unmet need, large opportunity, and a proven market that we can go drive growth in. So our enthusiasm's really high for the type 2 opportunity.

Yeah, Lee, as I just described, about 40% of our new customer starts were coming from type 2 in the second quarter. As we called out, we had more customers attriting during the first 90 days than we were happy with. So we are taking four actions in order to ensure that customers who start on Omnipod stay durably and continue to have their lives improved by the technology. Those four things include changes to the sampling program, some changes to field incentives to ensure that they're rewarded for durable growth, and Podders who are continuing to have a good experience, ramping our service teams, and accelerating the launch of Omnipod Discover, our digital health platform that also provides insights and education directly back to people's diabetes.

We are confident that those four actions that we are taking together will help us address the higher attrition that we saw in type 2 in the second quarter. Zooming in on sampling for just a second, what we are really doing is we are improving the workflow associated with deploying samples. We know that, having looked at territories across the country and looked at where sampling is being done well and where we have opportunities, we see that when there is a clear protocol for assuring that we get the script written, if there is a prior auth, that that gets done, that we have the right kind of conversation about coverage, and that the customer knows how to get support from Insulet, that that will be a durable start.

What we are just pulling through is that playbook all through our commercial footprint to make sure that our sampling goes as well as we know it can.