Insulet slides on report of increased adverse events, customer complaints
Investors pressure Insulet shares after a report surfaces claiming increased adverse event reports in an FDA database and rampant customer complaints.
Insulet (NSDQ:PODD) shares are off some 4.5% since the end of last week, after a JMP Securities report of increase adverse event reports and rampant customer complaints for its OmniPod insulin management device.
PODD shares were trading at $37.75 apiece at market's close Sept. 19, having reached a 52-week high, but fell some 5.5% the next day, to $35.69 each after JMP analysts downgraded their rating on Insulet stock to "market perform" from "market outperform."
"The company may be faced with quality control issues (maybe because of the surge in demand) that may attract FDA's attention or require retooling the manufacturing process," the analysts wrote in a Sept. 20 note to investors.