And both of them have, as we’ve always said, CGM pays road for us because people get used to having an on-body experience with a sensor and it makes it much easier for them to then jump to an on-body experience with an Omnipod. And so we think it opens up — you can go look at the market share, the estimated market share for our two partners, but we think the Libre integrations open up a large installed base both in Europe and the U.S. of people who will be ready for Omnipod because they’re used to a on-body CGM experience.
Operator: Your next question will come from the line of Marie Thibault with BTIG.
Sam Eiber: Sam on for Marie. Maybe I can follow up on some of the type 2 comments. And just looking at pivotal data coming up at ADA and then filing for label expansion, how much of an uplift could that be once you do get the expanded label there? Just considering 20%, 25% of new patient starts are already coming from type 2?
Jim Hollingshead: Thanks, Sam. If you just look at the size of the end markets there, and I’ll repeat numbers that we shared before. In the U.S., there are about 1.6 million people living with type 1 diabetes. And if that market is about, probably, something less than 40% penetrated with AID therapy. Then in the type 2 market, there are somewhere between 3 million and 4 million people living with type 2 who are on basal-only therapy. And somewhere around 2.5 million people living with type 2 in the U.S. who need intensive insulin therapy, so basal plus bolus. Omnipod 5 is really aimed at that intensive insulin therapy population, about 2.5 million people in the U.S. And therefore, it’s a larger end market than Omnipod 5 plays in now with its current label.
We know that, that market is less than 5% penetrated with AID therapy. And we are already the market leader in that segment of the market because Omnipod DASH has a label there, and we know we’re the clear market leader in the space. So we’re very optimistic. Omnipod 5 is very easy to use. It takes a lot of the burden off of managing your diabetes. That’s why it’s been so successful in the type 1 population. And we’re very optimistic about that value proposition going into the intensive insulin using type 2 population, which is a larger end market than the one we’re playing in today. So we think it is a really important opportunity and a market that, by the way, will continue to grow over time.
Operator: We have time for one more question. Your final question comes from the line of Danielle Antalffy with UBS.
Danielle Antalffy: Just a question on the wholesaler stocking and that whole dynamic because it is something now we have to start thinking about in the model, But and I know it’s unpredictable. But qualitatively, maybe you could talk about how much visibility you have into when that pod that gets stocked goes on to a patient. I guess trying to get a sense of is this something that’s going to happen to this level every single quarter, if they’re going off the shelves very quickly? How long do the stocking sort of fit on the shelf there?
Lauren Budden: No. I mean it doesn’t really stay on the shelf that long. I mean we — it’s a pretty efficient channel. In terms of the visibility into the date on hand though that’s not something that we ever included in our guidance, and that’s something that we can’t control. And so unfortunately, this quarter, we had the double whammy of them taking the inventory level back up after they had taken them down earlier in the year. And then at the same time, we had the ERP pull forward dynamic. So I don’t expect that we’d see something of that magnitude. But again, when we have something like this, what we do is, we call out and we tell you when it happens, we don’t have the ability to guide to it. It’s not something in our control.
Operator: And we do have time for one more question. That question will come from the line of Matt Miksic with Barclays.
Matt Miksic: Great. So maybe a bit of a 2-parter good news and maybe challenging news question, if I could, just at the end, is — you had mentioned that you’re looking for acceleration on the back of [indiscernible] G7 integration. And I mean given the new patient share that you’re catching now, I just would ask maybe what’s — it’s very high growth, and it’s very high share of new patients. What additional patients do you get with G7 that you’re not already capturing and in the advantage that you seem to be having in the clinic? And then the other question is looking out a year, 18 months or so, not certain, of course, but it certainly seems like there’s going to be, at some point, another tubeless pump on the market from one of your competitors or more.
And so maybe just think about your — how do you think about that? And how do you prepare for that? How do you look to continue your leadership in that segment? And how should we — investors think about that if I can grow potentially.
Jim Hollingshead: Thanks, Matt. I’ll do those in reverse order. The first one is on the tubeless form factor. We obviously watch our competitor pipelines as closely as we can. And in terms of what is out there publicly that we can see, we don’t see anything coming in that time frame that’s even close to what we have in market right now with Omnipod 5, just in terms of the whole package, the convenience, the ease of use, the scalability, the wear experience, automated needle insertion, we could go on and on about the feature set that we are very confident in our competitive position. We’re never complacent. We have a lot of respect for our competitors, and we know that what — because Omnipod in general, but Omnipod 5 has been so successful, everybody wants to chase it.
So that just makes sense, and that’s how competition works. But we are very confident in our competitive position, and we don’t see anything coming in anybody’s pipeline that even matches what we have, and we’re going to continue to drive innovation. So we’re going to extend our lead. On the first part of your question, it’s a really good question. Yes. We’re obviously doing very, very well in the market with our existing offer. And as I said in the prepared remarks, it’s really — we really see it as our minimum viable product, and we’ve done so well with it. But on specifically the G6 and G7, what you’re seeing and it’s — you can go look analytically at the underlying script data, what you’re seeing is G7 is really doing well with new customer starts.
So a lot of people going on to G7. And you guys have heard this is probably corny but you’ve heard me use the metaphor before, about fishing. If you think we’re out fishing in the stock pond, the pond has a lot of G6 in it, but it’s got more and more G7 in it all the time. And so we want to be able to go out there and fish in both bonds and proportionally, G7 is a larger and larger part of the market. We want to — now I’m going to mix metaphors. We want that wind at our back of all the patients coming under G7. We know the offer together, Omnipod 5 and G7 is going to be terrific and drive a lot of growth for us just like Omnipod 5 with G6 had.
Operator: This concludes our Q&A section. I would like to turn the conference back to Jim Hollingshead.
Jim Hollingshead: Thank you, everybody, for joining us today. We are really excited to have delivered another outstanding year for Insulet. We’re focused on extending our leading position with our deep expertise and strong emphasis on innovation, operational excellence and further improving the customer experience. We remain committed to driving value for our shareholders through margin expansion and cash flow generation, all while maintaining our emphasis on investing for growth. I also want to once again thank our outstanding Insulet global team for their dedication and their focus on innovation and passion to our customers. Thank you, everybody. And with that, I’ll thank you all and wish you all a great evening. Good night, everybody.
Operator: Ladies and gentlemen, this concludes today’s conference. Thank you for your participation, and have a wonderful day. You may all disconnect.
