Modular Medical Inc (NASDAQ:MODD) experienced a modest share increase following news that the company reached a contract with a national U.S. pharmacy benefit manager. The stock rose 2.3% on Friday after the company confirmed the arrangement.
The agreement makes the companys Pivot tubeless patch pump available through the national PBM, a move Modular Medical characterized as an expansion of patient access to its insulin delivery platform. Company executives say the deal represents progress in the commercial pathway for the Pivot system.
"We believe this agreement with a national PBM, one of the largest in the country, represents an important commercialization milestone for our Pivot patch pump," said Jeb Besser, Chief Executive Officer of Modular Medical.
Modular Medical is a commercial-stage medical device company and is actively preparing for the commercial launch of the Pivot tubeless patch pump. The system is a wearable insulin delivery platform engineered to provide continuous subcutaneous insulin infusion, delivering both basal and bolus insulin over a three-day wear period.
The company has positioned the Pivot as a pathway for people with diabetes to move from multiple daily injections to insulin pump therapy. By making the Pivot available via a national PBM, Modular Medical aims to enhance access to its tubeless patch pump for patients who obtain medications and devices through PBM-managed channels.
Pharmacy benefit managers play a coordinating role between health plans, employers, pharmacies, and manufacturers to manage prescription drug benefits and to facilitate access to therapies. The PBM contract therefore aligns with Modular Medicals commercial strategy ahead of the product launch.
Context and outlook
Modular Medicals announcement highlights a commercialization step in its rollout plan for the Pivot tubeless patch pump. The company has framed the PBM agreement as a mechanism to broaden distribution and to ease patient access to its insulin delivery technology as it approaches market introduction.
While the news prompted a short-term uptick in the stock price, Modular Medical remains in its launch preparation phase and the PBM agreement is one element of its broader commercialization efforts.