Modular Medical, Inc. (MODD): History, Ownership, Mission, How It Works & Makes Money

Modular Medical, Inc. (MODD) is a development-stage medical device company, but can a firm with a market capitalization of just $24.71 million and a net loss of $18.8 million in fiscal year 2025 truly disrupt the diabetes care market? Their mission is clear: simplify insulin delivery to tap into the estimated $3 billion adult 'almost-pumpers' market, a segment often overlooked by complex, high-cost devices. Even as they operate as a pre-revenue company, the recent November 2025 submission of the Pivot Tubeless Insulin Patch Pump for FDA 510(k) clearance shows a critical, near-term catalyst. If you're looking for where the next wave of medical device value will be created, you need to understand the history, business model, and ownership structure driving this high-risk, high-reward play.

Modular Medical, Inc. (MODD) History

You need a clear picture of Modular Medical, Inc.'s (MODD) journey, not just its current financials. The company's history is a story of a medical device veteran pivoting his focus to a massive, underserved market-the almost-pumpers-by simplifying a complex technology. The key takeaway is that the current iteration of the company, focused on the MODD1 and Pivot insulin pumps, is a relatively recent, heavily capitalized push, culminating in their first FDA clearance in September 2024, but it is built on a much older corporate foundation.

Given Company's Founding Timeline

Year established

The original corporate entity for Modular Medical, Inc. was established in 1998, but the current innovative insulin pump business, which is the core of MODD today, began in earnest in 2015, when founder Paul DiPerna started the self-funded development of the new micro-pump technology. The company then merged into a financed public shell in 2017 to accelerate its path to market.

Original location

The company has consistently maintained its headquarters in San Diego, California, a hub for medical device innovation.

Founding team members

The foundational technology and vision were created by Paul M. DiPerna, who is the Founder, President, and Chief Financial Officer. DiPerna is a 30-year medical device veteran and, notably, also founded Tandem Diabetes Care, where he invented the t:slim pump. The current strategic direction is led by CEO James E. Besser.

Initial capital/funding

While the initial capital for the current technology was self-funded by DiPerna in 2015, the major capital injections that fueled the final stages of product development and commercialization readiness came much later. In February 2022, the company completed a NASDAQ uplisting that raised $15 million. More recently, in the 2025 fiscal year, a March 2025 private placement secured approximately $12 million in gross proceeds to optimize the supply chain for the MODD1 product launch.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The most transformative decision for Modular Medical was choosing to target the $3 billion adult almost-pumpers market-individuals with diabetes who avoid current insulin pumps due to complexity, bulk, or cost.

This focus drove three key actions:

• Simplifying the Device: The MODD1 is a two-part patch pump with a simple, one-button interface and a 90-day reusable component, directly addressing the complexity barrier.
• Aggressive R&D Spend: The company posted a Net Loss of $18.8 million for the fiscal year ended March 31, 2025, with R&D expenses alone at $14.7 million. This heavy investment shows a clear prioritization of product development over immediate cost control.
• The Pivot Strategy: Following the MODD1 clearance, the company immediately shifted focus to the next-generation Pivot system. This tubeless, removable 3-milliliter patch pump is designed to be even more user-friendly and is moving quickly toward a Q1 2026 commercial launch. Honestly, that speed is impressive.

To be fair, this aggressive spending means the company had a cash balance of only $13.1 million as of March 31, 2025, so managing that cash burn is defintely a near-term risk. For a deeper dive into the company's financial structure and liquidity, you should read Breaking Down Modular Medical, Inc. (MODD) Financial Health: Key Insights for Investors.

Modular Medical, Inc. (MODD) Ownership Structure

Modular Medical, Inc. (MODD) is governed by a structure typical of a publicly traded micro-cap company, where retail investors hold the majority of shares, but institutional funds and insiders maintain significant, influential stakes. This split means the company must balance the interests of a large, dispersed retail base with the concentrated power of its largest institutional shareholders and the management team.

Modular Medical, Inc.'s Current Status

Modular Medical, Inc. is a publicly traded company, listed on the Nasdaq Stock Exchange under the ticker symbol MODD. This public status means its financials and operations are subject to SEC scrutiny, and its stock is freely traded by the public. As of November 20, 2025, the company's market capitalization stood at approximately $24.71 million, placing it firmly in the micro-cap category. This smaller size often leads to higher stock price volatility, but it also allows for greater potential upside if the company's Pivot tubeless insulin patch pump secures FDA clearance and achieves commercial success. You can learn more about the company's strategic focus by reviewing its Mission Statement, Vision, & Core Values of Modular Medical, Inc. (MODD).

Modular Medical, Inc.'s Ownership Breakdown

The company's ownership structure is heavily weighted toward retail investors, which is common for smaller, development-stage companies. Here's the quick math on who owns the shares, based on the most recent complete data for the 2025 fiscal year.

To be fair, institutional ownership is a bit fluid, with some reports showing it as high as 27.47%. Still, the takeaway is clear: retail investors hold the majority, but institutional funds and insiders control a significant enough portion-nearly 40% combined-to influence strategic votes and board appointments. This defintely creates an interesting dynamic for corporate governance.

Modular Medical, Inc.'s Leadership

The company is steered by an experienced executive team with deep roots in the medical device and diabetes care industries, ensuring the strategy is grounded in sector-specific knowledge. Their collective experience averages around 3.5 years of tenure in the current management team.

• James (Jeb) Besser, Chief Executive Officer (CEO): Appointed in February 2022, Besser brings a strong financial background, having been a Managing Member of Manchester Management LLC, which is a major institutional shareholder.
• Paul DiPerna, Founder, President, and Chairman of the Board: DiPerna is the company's largest individual shareholder and a key technologist, having founded several successful medical device startups, including Tandem Diabetes Care. He also serves as the Chief Financial Officer, Principal Accounting Officer, and Treasurer.
• Kevin Schmid, Chief Operating Officer (COO): Schmid's four decades of experience in drug delivery and diabetes management, including a senior role at Insulet Corporation, are crucial for advancing the Pivot pump's manufacturing and operations.
• James Sullivan, Interim Chief Financial Officer (CFO): Sullivan leads the finance and administrative functions, bringing over 30 years of public-company financial management experience.
• David Bosshard, Head of International Operations: Appointed in October 2025, Bosshard is tasked with accelerating global expansion, leveraging his two decades of experience, including leading the European launch of Omnipod at Ypsomed AG.

The leadership team is actively focused on regulatory milestones, having submitted the Pivot tubeless insulin patch pump for FDA 510(k) clearance in November 2025, with a target commercial launch in Q1 2026.

Modular Medical, Inc. (MODD) Mission and Values

Modular Medical, Inc.'s purpose extends beyond its financial results-like the net loss of $18.8 million in fiscal year 2025-focusing instead on fundamentally simplifying insulin pump therapy to drive wider adoption and better patient outcomes.

The company's cultural DNA is built around accessibility and ease-of-use, aiming to disrupt the complexity and high cost that have historically limited the diabetes device market, particularly for the growing Type 2 diabetes population.

Modular Medical, Inc.'s Core Purpose

Modular Medical, Inc. is a pre-revenue medical device company, meaning its mission and vision are critical indicators of its long-term strategic value, especially as it moves toward commercializing its MODD1 pump in the quarter ending September 30, 2025.

Official mission statement

The formal mission statement points to a clear, patient-centric mandate, which is crucial for a company operating in the regulated medical device space. Here's the quick math: if their product simplifies care, it reduces the burden on healthcare systems, defintely a long-term value driver.

• Provide the highest quality medical products and services.
• Serve healthcare professionals, patients, and families.

This focus on quality and service is the bedrock of their value proposition, especially as they invest heavily in R&D, which totaled $14.7 million in fiscal 2025.

Vision statement

The vision statement maps their aspirations to a global scale, aiming to make advanced technology a standard of care worldwide, not just in the US where their MODD1 received FDA clearance in September 2024.

• Provide a world-class product offering.
• Equip clinical and healthcare environments across the globe.
• Ensure access to the latest advancements in medical technology.

Achieving this vision requires significant capital, which they've been raising; for example, a private placement in March 2025 brought in approximately $12 million in gross proceeds. You can dive deeper into their long-term strategy here: Mission Statement, Vision, & Core Values of Modular Medical, Inc. (MODD).

Modular Medical, Inc. slogan/tagline

While not a formal corporate slogan, the language used in their product marketing cuts straight to their core value proposition. They are selling simplicity, not just a device.

• Diabetes Made Simpler.

This tagline perfectly encapsulates the company's goal to fundamentally alter the trade-offs between cost and complexity in insulin pump therapy, making the transition from manual injections smooth. It's a clean one-liner that tells you exactly what they stand for.

Modular Medical, Inc. (MODD) How It Works

Modular Medical is a medical device company that creates value by simplifying insulin delivery, specifically targeting the vast population of people with diabetes who avoid traditional pumps due to their complexity and high cost.

The company operates by designing, developing, and commercializing two-part, user-friendly patch pumps, with a core strategy focused on a low-cost, high-volume manufacturing platform to make advanced glycemic control accessible to the estimated $3 billion adult 'almost-pumpers' market.

Modular Medical's Product/Service Portfolio

Modular Medical's Operational Framework

Modular Medical's operational process is currently defined by a critical transition from development to commercialization, which is why the company reported a Net Loss of $18.8 million for the fiscal year ended March 31, 2025. Here's the quick math: R&D expenses alone were $14.7 million, a 14.1% increase, showing where the capital is going.

You can see the shift happening now. They received FDA clearance for the MODD1 in September 2024, and initial shipments were planned for the quarter ending September 30, 2025, in a single region. That's the start of their revenue engine.

• Design & Development: Focus on patented microfluidics technology to reduce complexity and component count, making the device simpler and cheaper to manufacture.
• Manufacturing Transition: Successfully produced over 6,000 MODD1 cartridges, but are now rapidly converting the line to produce cartridges for the Pivot pump, which is the long-term focus.
• Clinical & Regulatory: Submitted the Pivot pump for FDA 510(k) clearance in November 2025 and received Institutional Review Board (IRB) approval on November 17, 2025, to start in-house human-use studies, collecting real-world usability data ahead of launch.
• Commercialization: Deploying a differentiated go-to-market strategy to reach the underserved adult market, aiming for a Q1 2026 launch of the Pivot, pending regulatory approval.

What this estimate hides is the cash burn; as of March 31, 2025, the company had a cash balance of $13.1 million, so successful commercialization is defintely the next major hurdle. For a deeper dive into the numbers, check out Breaking Down Modular Medical, Inc. (MODD) Financial Health: Key Insights for Investors.

Modular Medical's Strategic Advantages

The company's competitive edge isn't just in the tech; it's in the business model that makes the tech accessible. They are attacking the market where competitors like Tandem Diabetes Care and Medtronic have left a gap.

• Affordability and Simplicity: The core advantage is a design philosophy that eliminates the trade-off between complexity and efficacy, making the pump affordable and simple to learn, which is key for mass adoption.
• Targeting the Underserved Market: Directly aiming at the estimated $3 billion adult 'almost-pumpers' segment-patients who need a pump but are intimidated by current options. This is market expansion, not just market share theft.
• High-Volume Manufacturing Platform: The manufacturing process was engineered from the start for scalability and low-cost production, a critical differentiator for a high-volume product like a patch pump.
• Experienced Leadership: Founder Paul DiPerna previously founded Tandem Diabetes and invented the t:slim pump, providing a rare depth of industry knowledge and a proven track record in successful insulin pump design.

The Pivot pump's two-part, removable design is also a significant product advantage, as it offers a large 3 milliliter reservoir while still being tubeless, a combination not currently available in the market.

Modular Medical, Inc. (MODD) How It Makes Money

Modular Medical is currently a development-stage company, meaning it is not yet generating significant commercial sales, but its business model is designed to create revenue primarily through the sale of its innovative insulin pump systems and the high-margin, recurring sales of disposable cartridges.

You're looking at a company in the critical transition from research and development (R&D) to commercialization, so its financial engine is still in the ignition phase.

Modular Medical's Revenue Breakdown

As of the fiscal year ended March 31, 2025, Modular Medical, Inc. reported effectively $0.00 in product revenue, reflecting its pre-revenue status as it prepared for the commercial launch of the MODD1 pump. However, the future revenue structure is clear, based on the product's design, which relies on a razor-and-blade model.

Analyst projections for the company's revenue for the current year are around $3.26 million, a figure that, if realized, would signify the start of this commercial revenue stream. The company's strategy is that the recurring revenue from disposable cartridges will defintely become the dominant stream, much like other successful medical device companies.

Business Economics

The core of Modular Medical's economic model is its focus on simplifying the technology to lower the barrier to entry for a massive, underserved market-the 'almost-pumper' population, which includes a significant portion of Type 2 diabetes patients.

• Razor-and-Blade Model: The company sells the durable pump component (the 'razor') on a 90-day replacement cycle for the MODD1, but the real economic power comes from the recurring sale of the 3-day disposable insulin cartridges (the 'blades').
• Targeted Market Expansion: Modular Medical estimates its total addressable market is approximately $3 billion, assuming a cartridge revenue of about $4,100 per patient annually. Their goal is to capture patients who find current pumps too complex or costly.
• Cost-Effective Design: The MODD1 and its successor, the Pivot pump, use new microfluidics technology to allow for the low-cost pumping of insulin, which is key to achieving a lower price point and better insurance reimbursement for a wider patient base.

This is a volume play; they are sacrificing the high initial pump price of competitors for a steady, high-margin consumables stream from a much larger pool of patients.

For a deeper dive into the company's long-term strategy, you should look at their Mission Statement, Vision, & Core Values of Modular Medical, Inc. (MODD).

Modular Medical's Financial Performance

Since the company is in a development stage, its financial performance for the fiscal year ended March 31, 2025, is characterized by significant investment in R&D and a net loss, which is typical for a medical device company prior to a full product launch.

• Net Loss: The company reported a net loss of $18.8 million for the full fiscal year 2025, compared to a net loss of $17.5 million in the prior year.
• Operating Expenses: Total operating expenses were $19.0 million, an increase from $17.5 million, primarily driven by R&D for product finalization and commercial readiness.
• R&D Investment: Research and Development expenses were $14.7 million, representing a 14.1% increase year-over-year, showing their commitment to the Pivot product development and MODD1 commercialization.
• Liquidity: As of March 31, 2025, the company maintained a cash balance of $13.1 million, bolstered by a $12 million private placement completed in March 2025 to fund supply chain optimization.
• Loss Per Share: The basic net loss per share was -$0.51 for the fiscal year 2025.

Here's the quick math: they burned about $1.57 million per month in operating expenses in FY 2025, which is a key metric to watch as they scale up commercial operations and try to turn the corner on profitability.

Modular Medical, Inc. (MODD) Market Position & Future Outlook

Modular Medical, Inc. is a high-risk, high-potential medical device company currently positioned at the starting line of commercialization, shifting from a development-stage entity to an active market participant. The company's entire near-term outlook hinges on successfully launching its user-friendly, affordable Pivot tubeless patch pump into the underserved $3 billion US market segment of 'almost-pumpers.'

Competitive Landscape

The US insulin pump market, estimated to be worth $6.45 billion in 2025, is dominated by three major players. Modular Medical, Inc. is a new entrant, and its primary competition is Insulet Corporation in the patch pump category.

Opportunities & Challenges

Your investment decision here is defintely a bet on execution and market expansion, not on current financials. Modular Medical's fiscal year 2025 ended with a net loss of $18.8 million, and the net loss for the six months ended September 30, 2025, was $14.49 million, reflecting the heavy investment in R&D and commercial readiness. Here's the quick math on what matters now.

Industry Position

Modular Medical is currently a micro-cap challenger in a market dominated by large-cap medical device giants. It's a classic David vs. Goliath setup, but the company isn't trying to steal Medtronic's or Tandem Diabetes Care's most sophisticated users.

Instead, the strategy is to expand the total market by focusing on the 80% of insulin-dependent people who still use multiple daily injections (MDI) because current pumps are too complex or expensive. This is a critical distinction.

• Niche Focus: The Pivot system is designed for simplicity and affordability, directly addressing the barriers that keep the 'almost-pumpers' out of the pump market.
• Product Differentiation: The Pivot is positioned as the first two-part, tubeless patch pump with a full 3ml reservoir, offering a key advantage in wear-time and convenience over competitors' smaller reservoirs.
• Manufacturing Readiness: The successful validation of the Pivot controller manufacturing line in November 2025 de-risks the path to high-volume commercial production, which is crucial for their low-cost strategy.

The company's position is one of high leverage: a successful FDA clearance and a smooth Q1 2026 launch of Pivot could rapidly translate its low-cost structure into significant market penetration and revenue. For a deeper dive into the company's ownership structure and capital needs, you should look at Exploring Modular Medical, Inc. (MODD) Investor Profile: Who's Buying and Why?