Blue Orca goes short Insulet, sees ‘immediate’ 15% share drop

Blue Orca Capital announced a short position in shares of Insulet (PODD). The firm anticipates an “immediate” 15%-plus drop in shares, saying Insulet will reverse the gains it made upon the granting of the injunction “and as investors awaken to the restoration of an imminent competitive threat to Insulet’s flagship product monopoly.” The appellate court decision restores EOFlow’s business, clears the path for Medtronic (MDT) to acquire EOFlow, and “shatters” Insulet’s U.S. monopoly on tubeless automated insulin delivery systems, Blue Orca contends in a short report posted on its website. “It is highly misleading for Insulet to conceal from investors that the appellate court killed the very injunction which protected its competitive moat and was so material to its stock that, when the injunction was granted, its market capitalization gained $1.8 billion,” according to the firm. Shares of Insulet are up 7% to $173.08 following the report.