Modular Medical Shares Rise After Securing National PBM Contract

Shares of Modular Medical Inc. (NASDAQ:MODD) rose on Friday after the company announced it secured a contract with a national U.S. pharmacy benefit manager (PBM). The agreement is a significant step toward broadening patient access for its new insulin delivery system as the company prepares for its commercial launch.

PBM Deal Boosts Market Access

Modular Medical reported that its Pivot insulin delivery system will now be available through the network of what it described as one of the largest PBMs in the country. This development is crucial for the commercial-stage medical device company as it moves closer to the full market release of its flagship product.

"We believe this agreement with a national PBM... represents an important commercialization milestone for our Pivot patch pump," said Jeb Besser, Chief Executive Officer of Modular Medical, in a company statement. PBMs act as intermediaries between health plans, pharmacies, and manufacturers, managing prescription drug benefits for millions of patients.

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Market Impact and Product Details

Following the announcement, Modular Medical's stock climbed 2.3% in Friday's trading. Securing PBM coverage is a critical hurdle for medical device manufacturers, as it directly impacts the affordability and accessibility of products for patients and the potential revenue stream for the company.

The Pivot is a tubeless, wearable patch pump designed for continuous subcutaneous insulin infusion. According to the company, the system provides both basal and bolus insulin delivery over a three-day wear period, aiming to offer a simplified transition for people with diabetes from multiple daily injections to insulin pump therapy.