Modular Medical Inc. $MODD – Simplified Diabetes
Why a Hedge Fund Manager Took a $1 Salary to Force a Billion-Dollar Exit
Investment Archive: Modular Medical Inc. ($MODD) The complete chronology of our research and primary data
Investment Thesis is our core series where we break down standout public companies so you understand exactly how they make money, where the risks lie, and why the opportunity exists long before the market agrees.
This content is intended for informational purposes only and should not be taken as investment advice. The author does not represent any third-party interest, and he may be a shareholder in the companies described in this series.
Please do your own research or consult with a professional advisor before making any financial decision. You will find a full disclaimer at the end of the post.
Context
Manchester Management (Hedge Fund)
The Business
Investment Case
🔍 Business Overview
Before we dive in, let’s be clear: this is a high-conviction but high-speculation play. We aren’t suggesting a ‘buy in size’ moment yet, primarily because Modular Medical is still in the thick of the FDA approval process.
That said, Q1 and Q2 are shaping up to be ‘make or break’ windows. We’re tracking two specific catalysts that could re-rate this stock entirely. You can either trade the news by jumping in and out for quick gains, or follow our preferred route: wait for the first milestone to prove the concept, then slowly scale into a long-term position ahead of the second.
This report breaks it all down, including direct insights from Jeb Besser, Chief Executive Officer, on how they plan to win the market.
The insulin pump market is currently dominated by science projects built by engineers, for engineers.
Legacy devices from giants like Medtronic require users to navigate 1,300 different configurations and master a 42-step cartridge change ritual, while Insulet’s OmniPod forces patients to throw away a perfectly good computer every three days.
The result is a broken industry where 80% of potential users refuse to wear a pump because they simply don’t want a new hobby.
Modular Medical ($MODD) is trying to out-simplify everyone. Their device, the ‘Pivot’, strips the complexity down to just six settings and a 20-minute training session. Crucially, it offers a 3 mL reservoir (vs. industry standard 2 mL), finally addressing the 65% of Type 2 diabetics who are currently ignored by the patch-pump market.
Plus, this isn’t your typical founder story as we dive deep into the professional intervention it’s under.
Jeb Besser, the hedge fund manager who founded Manchester Management, grew so frustrated with the lack of urgency in the company that he fired the search committee and took over as CEO himself for a $1.00 salary.
He is an investor-operator running the company with a singular focus: maximizing the Internal Rate of Return (IRR) and finding an exit.
The math gets truly interesting when you look at the manufacturing economics. Management has invested in multi-cavity molds that allow them to scale to 30,000 users with just a manual line.
We’ve crunched the numbers on what happens to cash flow when they hit the 40,000 user inflection point and slash their COGS by 50%.
The valuation gap between survival mode and proven scale is massive, but you have to be willing to bet on the execution.
Here’s a short video on the company that you should watch before unlocking the full 70-page deep dive to see the specific valuation models, the manufacturing yield risks, and the exact timeline for the rollout.
🌱 Origin Story
It began with Paul DiPerna in 2015, the engineering mind who originally founded Tandem Diabetes and helped design some of the industry’s most successful insulin pumps.
DiPerna realized that while pumps were getting smarter, they were also getting too expensive and way too complicated for the average patient to use. He set out to build a modular system that stripped away the configurations of high-end pumps, focusing instead on a simple, low-cost design that anyone could master in minutes.
The company truly found its ‘shark’ energy when Jeb Besser, a hedge fund manager and major shareholder, realized that the search for a traditional CEO was yielding unmotivated candidates who didn’t appreciate the asset.
In 2022, frustrated by the lack of urgency, Besser took the unprecedented step of moving from the ivory tower of finance to the CEO chair.
This pivot from a founder-led engineering project to an investor-operated billion-dollar play turned MODD into a lean, aggressive competitor focused on one goal: making insulin therapy as simple and accessible as possible.
💱 Manchester Management (Hedge Fund)
The first thing you need to know about this company is that it has been under the intervention of a specialized hedge fund for a number of years. These investors focus on medical hardware, particularly devices on the verge of commercialization.
We have encountered them before. In fact, we wrote about one of their other portfolio companies, SanuWave, last April (2025).
