How Does Insulet Company Work?

The Insulet company’s operations are built around the Omnipod Insulin Management System, which includes the Omnipod Pod and the Omnipod 5 Automated Insulin Delivery (AID) System. This advanced diabetes technology integrates seamlessly with continuous glucose monitoring (CGM) systems, such as Dexcom G6, G7, and Abbott FreeStyle Libre 2 Plus. Manufacturing is highly automated, with facilities like the one in Acton, Massachusetts, dedicated to increasing production capacity and reliability.

The primary value offered by the Insulet company is the simplification of diabetes management through its tubeless and wearable insulin pump. This approach eliminates the need for multiple daily injections and the inconvenience of external tubing, offering users greater freedom and discretion. The Omnipod 5 system, for instance, provides automated insulin dosing, proactively managing glucose levels.

Early manufacturing innovations, such as the implementation of a 2-shot molding process for the Pod chassis, significantly reduced production costs. This process brought the cost down from hundreds of dollars to less than $10 per unit and cut assembly time by over 50%, showcasing the Insulet company’s commitment to operational efficiency.

Critical to delivering the disposable Omnipod Pods, Insulet’s supply chain and distribution network are robust. In the U.S., products are mainly distributed through wholesalers supplying pharmacies, a distinct model compared to competitors’ durable medical equipment sales. Internationally, distribution involves a mix of partners and direct-to-consumer sales.

The Omnipod 5 system received FDA clearance in January 2022 for individuals aged six and older with type 1 diabetes. A major expansion occurred in November 2024 with its indication for type 2 diabetes patients aged 18 and above, significantly broadening its addressable market by an estimated six million people in the U.S. This made it the first and only automated insulin delivery system suitable for both type 1 and type 2 diabetes.

International growth has been a core strategy, with Omnipod 5 launching in numerous countries including the U.K., Germany, France, and Australia since early 2025. The company also successfully defended its intellectual property against EOFlow Co. in U.S. District Court in 2024, safeguarding its market position.

The company's distinct tubeless design offers superior discretion and ease of use compared to traditional insulin pump systems. This technological edge, coupled with a pharmacy channel distribution model, lowers adoption barriers like high initial costs and long-term commitments.

Insulet's commitment to innovation is evident in its continuous algorithm advancements and development of next-generation automated insulin delivery products. This focus contributed to a gross margin improvement to 71.9% in Q1 2025, a 240 basis point increase year-over-year, reflecting operational efficiencies and sales growth.

Insulet is a leading provider of tubeless insulin pump technology, holding a strong position in the global insulin pump market. North America represents the largest market share, with Insulet being a major player alongside competitors.

The company's strategic entry into the type 2 diabetes market significantly broadens its reach. This expansion is crucial for capturing a larger segment of the diabetes management landscape.

Insulet faces risks from a competitive market with new entrants and established rivals. Supply chain dependencies and the need for continuous innovation to meet evolving consumer demands are also significant challenges.

Future growth hinges on expanding the Omnipod 5 globally and investing in AI for enhanced glucose prediction. Diversification into non-insulin drug delivery also presents a substantial opportunity.