Modular Medical Inc. (MODD), a commercial-stage medical device company, just landed a deal that could make its insulin pump a lot easier to get for people with diabetes. The company announced it has signed a contract with a national U.S. pharmacy benefit manager (PBM), which means its Pivot tubeless patch pump will now be available through that PBM's network.
For those not steeped in healthcare jargon, a PBM is essentially the middleman that manages prescription drug benefits for health plans, employers, and other payers. They decide which drugs and devices are covered, negotiate prices, and handle the paperwork. Getting on a PBM's formulary is a big deal for any medical product, because it's often the gateway to patients actually being able to get it without jumping through hoops.
The Pivot pump is a wearable insulin delivery system that provides continuous subcutaneous insulin infusion, meaning it delivers both basal (background) and bolus (mealtime) insulin over a three-day wear period. It's designed to be simple and tubeless, which could be a game-changer for people who find traditional insulin pumps cumbersome.
Modular Medical's management is clearly excited about the potential reach this contract unlocks. They see it as a way to broaden patient access to the Pivot system across the country, and also as validation that the pump is a credible, accessible therapeutic option for people living with diabetes.
"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, CEO of Modular Medical.
The strategic importance of PBM partnerships can't be overstated. These organizations sit at the center of the U.S. healthcare system, working with health plans, employers, pharmacies, and manufacturers to administer drug benefits and improve care. They evaluate a product's clinical value, negotiate reimbursement arrangements, and secure formulary placements. In short, they help patients get the therapies they need through their existing insurance.
This news comes on the heels of a busy few months for Modular Medical. In August, the company kicked off the first phase of commercializing the Pivot pump across five strategically selected U.S. markets, with the launch set for October 2026. To support that rollout, they've partnered with Inizio, a global commercialization partner. And back in June, the company announced that the first patients had completed onboarding and training and were already using the Pivot pump in real-world settings.
Investors seem to like what they're hearing. Modular Medical shares were up 9.06% to $3.73 at the time of publication on Friday.
It's still early days, but this PBM contract could be a significant step toward making the Pivot pump a mainstream option for diabetes management. For a company that's just transitioning to commercial stage, having a national PBM on board is a strong signal of confidence in the product's potential.
