Insulet plunges on 4Q results and 2009 forecasts

Shares of Insulet Corp. tumbled Friday after the insulin infusion system maker said its loss nearly doubled in the fourth quarter, mostly due to a restructuring charge.

Insult said late Thursday it lost $28.3 million, or $1.02 per share, compared with a loss of $15.7 million, or 59 cents per share in the fourth quarter of 2007. Sales and marketing expenses almost doubled to $10 million, and the company paid $8.2 million in marketing costs after moving its manufacturing operations to China. Revenue more than doubled to $11.9 million from $4.4 million.

Analysts expected a loss of 64 cents per share and $12.3 million in revenue, according to Thomson Reuters.

The OmniPod system maker also forecast a larger-than-expected loss and less revenue than analysts anticipated. Insulet said it expects to lose $50 million to $60 million in 2009, on $55 million to $65 million in revenue. Analysts were looking for a loss of $43.2 million, or $1.50 per share, and $77.7 million in revenue.

In afternoon trading, Insulet shares dropped $1.86, or 36.4 percent, to $3.25. Trading volume was more than three times heavier than normal.

Thomas Weisel Partners analyst Raj Denhoy said the outlook is a disappointment.

"The uncertain economic environment and the prospects for slowing patient adoption and increased attrition are prompting the company to take a much more cautious view on '09," he wrote in a note to clients. Denhoy also said Insulet will need more cash by the end of this year or early 2010, which could impair its growth later in the year.

In 2008, the Bedford, Mass., company lost $92.8 million, or $3.36 per share, compared with a smaller loss of $53.5 million, or $3.21 per share in 2007. Revenue grew to $36.1 million from $13.4 million.