William Blair on Tuesday initiated coverage on MiniMed Group Inc. (NASDAQ:MMED), a pure-play diabetes devices company.

MiniMed's Competitive Setbacks And Strategic Reset

William Blair analyst Steven Lichtman said MiniMed, a unit of Medtronic Plc (NYSE:MDT), lost its U.S. insulin pump leadership earlier this decade as rivals introduced more advanced technologies.

The analyst noted that innovation from competitors such as Insulet Corp (NASDAQ:PODD) and Tandem Diabetes Care Inc. (NASDAQ:TNDM) slowed MiniMed's growth trajectory.

By early 2021, the company had relinquished its top position and soon dropped to third place in the U.S. market.

A key limitation was MiniMed's closed system architecture, which relied solely on its proprietary continuous glucose monitoring (CGM) technology.

In contrast, competing systems are integrated with leading CGMs from DexCom Inc. (NASDAQ:DXCM) and Abbott Laboratories (NYSE:ABT).

Additionally, MiniMed's hardware innovation lagged, with no major refresh since its 670G system.

Pipeline Improvements Signal Stronger Positioning

Despite these challenges, Lichtman said MiniMed's product portfolio and pipeline have improved meaningfully in recent years.

The analyst highlighted that new product development has strengthened the company's competitive stance, positioning it more favorably against both established players and emerging entrants.

Last week, the U.S. Food and Drug Administration (FDA) cleared MiniMed Flex, a next-generation discreet, smartphone-controlled insulin pump.

About half the size of the MiniMed 780G pump and roughly the size of two stacked insulin vials, MiniMed Flex is the company’s first screenless design.

Expanding Market Opportunity Supports Growth Outlook

William Blair sees a substantial runway in the insulin pump market. In the U.S., about 1.9 million people live with type 1 diabetes, yet fewer than 45% use insulin pumps.

Penetration remains even lower internationally, at roughly 25% across 3 million patients in developed markets.

Overall adoption across a combined 5 million type 1 diabetes patients stands at just 30%–35%.

Advancements in automated insulin delivery (AID) systems have driven increased adoption, supporting low double-digit market growth.

The expansion into type 2 diabetes represents an additional opportunity, with a comparable 5.5 million patient population but only about 6% penetration.

Competitive Risks And Valuation Upside

Lichtman cautioned that MiniMed continues to face competition from Insulet, Tandem Diabetes Care, as well as newer entrants like Beta Bionics and Sequel Med Tech.

Profitability also remains a balancing act, with operating margins below 10%.

However, MiniMed trades at a notable discount to peers, with an EV/sales multiple of 1.3x for calendar 2026 versus 3x for competitors, and a P/E of 15.8x compared to 18.7x.

William Blair maintains an Outperform rating, citing an attractive risk-reward profile as the company works toward a sustained turnaround.

MMED Stock Price Activity: MiniMed shares were up 3.49% at $15.44 during premarket trading on Wednesday, according to Benzinga Pro data.

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