Medtronic's EOflow Acquisition Will Not Impact Insulet's Omnipod' Insulin Pump In Near or Medium Term: Analyst

Thursday, Medtronic Plc MDT agreed to acquire Korea-based EOflow Co Ltd, manufacturer of the EOPatch device — a tubeless, wearable, and fully disposable insulin delivery device.
The total consideration would be KRW 971 billion ($738 million).
William Blair writes that the announcement is not expected to impact Insulet Corporation PODD in the near and medium term.
The company sees strong momentum with the Omnipod 5 launch and long-term catalysts, such as the basal pod in 2024 that expands access deeper into the type 2 market.
The analyst sees many TAM-expansive opportunities still to come. It rates the stock Outperform.
It will look for any further detail on timing or launch plans at Medtronic's ADA meeting in June to understand the impact the acquisition can have on the market and Insulet.
William Blair writes that the EOflow acquisition further supports the potential for this type of technology. However, the technology will have much to prove (and add to) before becoming a more substantial patch pump player.
Price Action: PODD shares are up 6.03% at $293.75 premarket on the last check Friday.

Analyst Calendar