Insulet (PODD) sees emerging headwinds from new market entrants in 2027 and 2028, with the debate around patch or pump switching cost slated to intensify, Oppenheimer said in a note Monday.

Analysts noted that price pressure is rising, with about 10% to 20% of the company's commercial user base potentially seeing managed Medicaid or non-preferred exposure, where the company's Omnipod costs $500 a month, compared with rivals priced between $350 and $450 a month.

They added that the company's checks suggest about 5% to 10% additional rebate concessions being negotiated for calendar year 2027.

Meanwhile, Insulet's intellectual property domain might not be enough to deter new entrants, Oppenheimer said, adding that the company's main IP moat is around one-piece architecture, which carries about 1,000 global patents, while its two-piece coverage is now expired.

Oppenheimer maintained its perform rating on the company's stock.

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