(AOF) – Insulet, specialist in insulin pump technology with its Omnipod brand, announced first quarter profit below market expectations, weighed down by higher marketing expenses: 23 cents per share on an adjusted basis versus forecasts of 39 cents. The company posted a 23% rise in revenue to $441.7 million for the quarter ended March 31, above the estimate of $424.05 million.
The company’s quarterly selling, general and administrative expenses increased 22.7% to $199.7 million from the prior year.
The Massachusetts-based firm now expects annual revenue growth of between 14% and 18%, compared to previously expected growth of 12% to 17%, and above average analyst estimates (15.62%).
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Oncology, priority of pharmaceutical giants
Sanofi’s stock market disappointment recorded at the end of October 2023 underlines the new direction for the group, which has now set oncology as its number 1 priority. Efforts in this segment, where therapies are advancing the fastest, notably involve investments in R&D which weigh on profitability. Sanofi therefore announced a drop in its earnings per share in 2024 and the abandonment of its objective of an operating margin of 32% in 2025. Merck has just unveiled a new alliance. It will pay up to $22 billion to the Japanese group Daiichi Sankyo as part of a partnership on experimental cancer treatments. While some experts estimate that the United States represents nearly half of global oncology spending (drugs and treatments), or $196 billion in 2022, Chinese spending in this area has more than doubled in five years, going from 5 to 11.8 billion dollars.