Jim Hollingshead: Thanks, Bill. We haven’t given timing on Omnipod GO, and obviously we haven’t yet filed Omnipod 5. And so, the commercial pilot’s intended to make sure that we have enough learning in place to put the right commercial model in place. And we’ll figure out exactly how we’ll bring the portfolio. So, we have not updated on timing for Omnipod GO, but I think you can easily envision that with a portfolio of products, the commercial model looks different than with a single product. So, I’ll put it that way, I think. With the ATDD data, to me, the real-world evidence that we were able to show makes it really clear that the Omnipod 5 algorithm is a world-class algorithm. It produces fantastic results, clinical results.
It produces it across age groups, across demographics. And as we said before, one of the things that’s unique about our real-world evidence is that it’s from all comers. And so it’s not only from highly engaged patients who upload their data, it’s from all patients who are on Omnipod 5. And so, when it has robust results, you can sort of see it as extra robust, because it’s a clear view into every corner of the user population. And on top of that, what it shows is we produce great time and range, as I said, but we continue to have very low hypoglycemia in our algorithm, which is a big competitive advantage for us. So that data is helping us now out in the field as we talk to physicians and continue to introduce Omnipod 5 to new users to demonstrate just how clinically effective Omnipod 5 is on top of and in addition to its great ease-of-use.
Operator: Great. Thank you so much. Your next question comes from the line of Marie Thibault with BTIG. Marie, your line is open.
Marie Thibault: Hi, good evening. Thanks for taking the questions. I’ll move away from the top line here and focus on margins. You had excellent operating margin again this quarter. Wanted to ask a little bit about the near-term cadence. Saw that you raised the guidance, but also heard that you’re expecting some incremental expansion of the salesforce. So, just any guidance on a quarterly cadence on that metric. Thanks.
Ana Maria Chadwick: Yes, this is Ana. Thanks for the question. We’re in a really strong position as we look at our operating margin. I’ll break it down. From a gross margin perspective, we did that 69.5. That’s very strong. We look to have strength on that as we progress through the year. Now, from an operating perspective, what we need to balance out here is the investments, because we want to really position ourselves into the future. As Jim and I have talked, it’s kind of a good problem to have. And we have a cadence around analyzing our investments and making sure there’s that rigor of those returns. As we sit here, yes, we see upward mobility here in our margins. At the same time, we want to be prudent in our capital allocation to continue to fuel the growth.
As you mentioned here, the salesforce and the different investments in our product and product features and other things. So, it’s a real balance, and we will continue to drive margins up as our priority and continue to prioritize our investments.
Operator: Great. Thank you so much. Your next question comes from the line of Chris Pasquale with Nephron. Chris, your line is open.
Chris Pasquale: Thanks. Jim, I wanted to understand your GLP-1 comment better. The thesis around GLP-1 use in type 2 is that it would help those patients take a couple of steps back on the disease progression escalator, if you will. So, maybe the insulin use can be delayed, or if they’re already on insulin, they can use less. And now you’re talking about the transition to insulin use actually being accelerated. So, do you think being on a GLP-1 is really making them more likely to need insulin, or is what you’re picking up there just that these patients were not engaging with their disease previously and now they are, and GLP-1s are the catalyst to get them more active?
Jim Hollingshead: Yeah, great question, Chris. Yeah. Obviously, we’d be speculating. And we’ll be publishing an update that will give you all more details, so I don’t want to steal the thunder of what we’ll put out. So, you can also look at the slides, and we can have a better conversation about it. But I’ll just say we’d have to speculate what’s actually happening. The analysis is based on claims data, and so it’s very robust. It’s very large-end claims data. And what it shows is that for those patients who adopt GLP-1, they are much more likely to also adopt insulin in the same year. And given what we see — so I’m now going to speculate, just for a second, okay? Given what we see with GLP-1s, we know GLP-1s lower A1c. So, I think the dynamic is more likely the second — your second suggestion, which is patients go in, they get put on a GLP-1 because their A1cs are really high, and then either they drop off of the GLP-1, which we’ll also have some information on that in our deck, or they stay on GLP-1, but they haven’t resolved their A1c issue, and therefore they also go on insulin.
And so that’s what we see in the claims data, but we can’t assert out of the claims data what’s actually happening in the clinic. And I’m sure it’s different for every patient, but at the population level, that’s the very clear and striking dynamic.
Operator: Great. Thank you so much. Your next question comes from the line of Mike Kratky with Leerink Partners. Mike, your line is open.
Unidentified Analyst: Hey, guys. This is Brett on from Mike. Thanks for taking the question. I just wanted to go back to the guide, I guess, on the high and the low-end. In particular, what are some of the assumptions in terms of just the G7 launch? Like, does it take a certain time in the summer that that’s going to launch to hit the high end of the guide, or the midpoint of the guide, or is there anything that we should be thinking about in terms of timing there? And then, with that, just overall attrition, and then the timing of the France launch as well, if there’s any swing factors there in the OUS guide.
Ana Maria Chadwick: All right. There’s a few questions here. Maybe we’ll tack them here between Jim and I. Let me take the guide first. Listen, it goes back to the fundamental. First and foremost, we’re increasing our revenue guide. Second point in terms of timing, we are absolutely assuming that as we put the new G7 pods into our channels, there’s going to be a reduction of the G6 as it gets sold through the channel. So, there is a destocking of that G6, and we have an assumption there, I’ll call it roughly in the $10 million or so. Now, the timing of all of this is really hard to go. That’s why, as I get the question asked, I keep bringing everybody back up to the full year, the second half of the year. But I just wanted to clarify because it’s been asked a few times, and that’s really our underlying assumption. And I want to go back to your second question around international. Can you repeat that?
Jim Hollingshead: France launch.
Ana Maria Chadwick: The France launch.
Unidentified Analyst: The timing of France. Yeah.
Ana Maria Chadwick: So, yeah — I’ll start. I mean, as we’ve said, the timing of the France launch will be here over the summer, and the teams are ready. They worked out all the pricing, and they’re working all the salesforce and everything. So, we expect — as we mentioned, that every country is slightly different. In France, there tends to be more of this four-year cycle of contract renewals, as people might have been previously in pumps and so on. So, we are assuming in our financials more of that optic into the later half of the year, very like later into the year as it ramps and it takes time, but really being a tailwind for us in 2025.
Operator: Great. Thank you so much. Your next question comes from the line of Josh Jennings with TD Cowen. Josh, your line is open.
Josh Jennings: Hi. Good evening. Thanks so much. I wanted to just ask on the pharmacy channel, Insulet enjoyed exclusivity to getting patient access through their pharmacy benefit. Our team doesn’t think there’s really much risk to the current model reimbursement levels that Insulet is achieving or securing, but are there any theoretical risks as some of the tube pump competitors start to open up that channel for patients and just thinking about either reimbursement levels, or just the model overall in terms of pump reimbursement and through the pharmacy channel? Thanks for taking the question.
Jim Hollingshead: Thanks, Josh. Really good question, and it’s something we could have a very complicated conversation about, right? But the very simple answer from our point of view is that what’s unique about pharmacy access for Omnipod 5 is that the product fits the channel really, really well. And tube pumps are durable equipment, and they don’t fit the channel very well. So, as anybody trying to enter the market and get into the pharmacy channel with some sort of durable equipment plus some consumable thing, it’ll be very difficult. For them to do it, they’ll have to do it with lots of workarounds. There’s going to be reimbursement challenges. There’s going to be scripting challenges and all kinds of things that we could have a much longer conversation about.
