Why Insulet Stock Was Zooming Higher This Week

Specialty device maker Insulet (NASDAQ: PODD) had some good news to impart to the world early this week, and investors jumped on the stock as a result. As the market started to prepare for its weekend early Friday, Insulet's share price had risen by almost 11% week to date, according to data compiled by S&P Global Market Intelligence .

New approval granted

Insulet specializes in insulin pumps, and on Monday it formally announced its latest offering in the category had received Food and Drug Administration (FDA) approval for a new indication. This product is the latest iteration of its Omnipod line, the Omnipod 5 Automated Insulin Delivery (AID) System. The FDA approved Omnipod 5 for type 2 diabetes patients 18 years of age and older.

The device had previously been approved for type 1 diabetes. Insulet said that the latest regulatory nod makes Omnipod 5 the only AID to carry FDA approval for both types.

" Insulet is paving the way for these individuals to achieve better health outcomes while living with greater confidence and freedom through the game-changing benefits of tubeless pod therapy," the healthcare device company's CEO, Jim Hollingshead, said.

Large patient population

There is certainly a significant addressable market in this country for that label expansion. According to Insulet, at the moment more than 30 million people suffer from type 2 diabetes. Of this number, roughly 6 million must take insulin treatments. Among that population are 2.5 million people who require multiple daily injections. This is the target market for Insulet, as the Omnipod automatically delivers dosages at regular intervals.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Insulet. The Motley Fool has a disclosure policy .