Supplier Problem Claimed as Root Cause for Current User Transition Delay

From the Q1 Earnings Call on 5/6/2013...

05:47 "With this significant uptick in demand, we did make the decision to delay the transition of existing customers for approximately 90 days in order to build additional OmniPod supply. While the manufacturing process continues to improve, we had an unexpected component issue that resulted in lower than planned production in the latter part of Q1. While this component issue was quickly identified, and remedied in conjunction with both Flextronics and the supplier, we determined it most prudent to build inventory and insure that both manufacturing lines were operating efficiently before we commence the transition of over 45 thousand customers to the new OmniPod. At this point, we expect that conversion will start in the next few weeks, and remain confident that nearly all customer will be transitioned by the end of the third quarter. "

This is…news. At least it’s a reasonable explanation. Disappointing, sure. But seems like it was just a crappy unfortunate circumstance and they executed what they thought was the best way to remedy it.

Thanks for posting Erik.

Yes, thank you. Somehow this makes me feel better, whether or not it's the whole story

Still not very reasonable for those of us that have access to the pods, but no PDM. Fact is PDMS are sitting there ready to be used...but instead, they insist on trying to SELL new customers, and "build up supply" for the rest of us that may or may not even get our pods through them...

Irritating for sure

The good news is, PODD stock is up today! Seriously, just looking for the good news here as I am still disappointed, but do feel better with a bit of an explanation that seems reasonable.

Hah..stock up Selling the NEW PDMS that should be ours....

Funny how theres enough "supply" to sell them to new people, but to leave the ones they cant sell in inventory is rediculous

damn I have stressed out over this transition too much, we have been ordering just a box at a time, practically running out, and now I look back at how much time i have wasted on this!! Guess I'll order one more box... thanks for posting, earnings calls are sadly the best way to find out these truths!!

If they had been more clear about what to expect, this all could have been avoided. That's been my issue - unclear, inconsistent communication. Set my expectations properly and I'll be okay. I don't think it's unreasonable to start new customers first - but say that. I don't think it's unreasonable to transition existing customers based upon their warranty expiration - but say that. I think those are reasonable steps for a deployment, but that's not what they communicated so our expectations were set incorrectly and now we're disappointed. That's unfortunate.

Thankfully, my son doesn't care. It doesn't matter to him. For me it's not about getting the smaller Pod or new IOB calculation, although I am anxious to have them. It's about the way the leadership of this company treated its loyal customers. I may not have any control about this now, but this experience, I will not forget, and we expect to be a pump customer for the foreseeable future.

For what it's worth, there was mention of "forum discussions" and unhappy customers (that wasn't the word that was used, but something along those lines) in the investor call by one of the financials analysts. So they are paying attention. It was in reference to some existing customers getting the new system when they should not have. It's nice to know they are giving our voice at least some consideration.

˄˄ That!
Lorraine I think you've hit the nail on the head. I think the apparent mishaps in communication have been most unfortunate.

If you have access to the new pods, you can buy a new PDM from American Diabetes Wholesale (which is frankly a little annoying) then you will have a backup when the one you should already have comes. That is if you don’t mind dropping $660 out of pocket.

Anyone know what happens if the new pods are ordered from a distributor? I think I have 3 months of new pods coming....but I don't have a new PDM. I am supposed to see the shipment tomorrow. Has anyone tried this method?

My new pods are on the way...but Insulet refuses to send the new PDM

Truth is they are sitting on the new PDM's trying to SELL them to new customers, and still wont send them to existing customers

I call them almost everyday in hopes that they will change their mind

Thanks for the info Agswin04. My podd supplier was excited to have the option to order the new podds for me, but told me to call Insulet for a PDM. I hope I don't end up with 5 boxes of podds, and no PDM. Tomorrow they come.

Too new pods will be in tomorrow as well. I still think Insulet would want to deal with those of us that dont get our pods through them...if they give us a PDM..thats one less to do later..

Actually Id NEVER call them again once I get the PDM

Funny you should mention that. We have had 5 boxes of new pods for a month and Omnipod says sorry no new pdm yet. We were told to send them back to supplier to be replaced with old pods. That's why I bought a pdm
elsewhere and will consider it a back up. Hope you have better luck.

I started looking around to buy one out of pocket at a reasonable price. All the ones ive called so far dont understand why Id want to do that.

I have 1 1/2 boxes of old pods for now im good. Not confident in getting the new PDM within a month so we shall see

I received my 5 boxes of new Pods today ($3,870 to my insurance company), but no PDM. My Pods are ordered from a distributor but sent from Insulet. I called product support and they told me to call my distributor and/or trainer and have them swapped out and sent back. I am not able to get a PDM until I get my letter from 'headquarters'. I asked to be transferred to 'headquarters', but they had all left. I asked for the direct number for 'headquarters' and was told to call 'product support' and they will transfer me. 'Headquarters' doesn't have a phone number.
I bet if I had received a shipment of 'old pods', they would have been assembled either this month or last month. That is what a found last month on my 1 month of pods. Despite the story to investors about the stockpile...if there is one, it seems to be too many parts that were over-ordered, not finished products. They seem to still be building the old ones....just for us.

$3,870 just from my insurance company. Maybe some of us should go back to MDI's for a couple of months....that $3,870 could add up fast. :-)

It's unfortunate for Insulet that it chose not to do the right thing by us. We would have been its' biggest cheerleaders......bragging about the pods wonderfully small exciting it is sooo light. Oh...and the IOB function, isn't that exciting. It gave us what we asked for.
Instead, we complain to product support, don't tell our insurance companies that they bought a product that we can't even use, and find the truth from conference calls...because product support is more in the dark than we are.
Insulet needs to learn how to market a product correctly.

I'm in the same boat. 15 days from going back to MDI unless Insulet finds it suitable to send me a PDM to use the pods they've been paid for. A regular company couldn't get away with this. I wish they didn't excercise their monopoly power like this.