Insulet's (PODD) voluntary global medical device correction affecting Omnipod 5, DASH and Eros Pods due to manufacturing issues that could result in insulin under-delivery is disappointing but does not alter the company's long-term outlook, RBC Capital Markets said in a note.
RBC analysts said about 8.5% of 2025 global Omnipod Pod production is impacted, with 24 serious adverse events reported but no deaths. The company expects up to $50 million in non-GAAP costs, primarily in the second quarter.
Insulet said the issue will not affect its 2026 guidance or 2026-2028 targets and added it has sufficient supply to replace impacted Pods without disrupting shipments, product availability or new customer starts.
RBC maintained its outperform rating and $280 price target.
Insulet shares were down by more than 7% in Wednesday trading.
Price: $142.69, Change: $-11.12, Percent Change: -7.23%