Inspire Medical Systems, Inc. · NYSE:INSP
Inspire Medical Systems — JP Morgan Healthcare Conference 2024
27 slides from Inspire Medical Systems's conference presentation, Jan 8, 2024
Slide 1: Inspire Medical Systems JP Morgan Healthcare Conference
1 Inspire Medical Systems, Inc. JP Morgan Healthcare Conference January 8, 2024 NYSE: INSP
Slide 2: Disclaimer
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Disclaimer This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts are forward- looking statemen
Slide 3: JP Morgan Conference Agenda
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL JP Morgan Conference Agenda • Inspire 2023 Year-in-Review • Preliminary, unaudited FY23 Revenue and Initial FY24 Revenue Guidance • Product Pipeline • Education and Awareness • Mechanism of Action and GLP-1s • Reimbursement • O
Slide 4: Inspire 2023 Year in Review
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Inspire 2023 Year in Review *video 1
Slide 5: Quarterly Revenue
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL $16.3 $18.0 $20.9 $26.9 $21.3 $12.2 $35.8 $46.0 $40.4 $53.0 $61.7 $78.4 $69.4 $91.4 $109.2 $127.9 $151.1 $153.3 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Q422 Q123 Q223 Q323 Q423E Quarterly Reve
Slide 6: Annual Revenue and Gross Margin; 2024 Guidance
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL $28.6 $50.6 $82.1 $115.4 $233.4 $624.7 2017 2018 2019 2020 2021 2022 2023E 2017 – 2022 CAGR: 70% Annual Revenue and Gross Margin ($ in millions) Annual Gross Margin 83 – 85%83.8%85.7%84.7%83.4%80.1%78.9% 2023 Guidance: • FY2023
Slide 7: Steady Cadence of New Center Adds
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL 7 10 12 18 15 15 15 22 20 19 21 33 28 15 42 55 47 63 68 81 73 51 58 61 68 72 62 78 Q 1 17 Q 2 17 Q 3 17 Q 4 17 Q 1 18 Q 2 18 Q 3 18 Q 4 18 Q 1 19 Q 2 19 Q 3 19 Q 4 19 Q 1 20 Q 2 20 Q 3 20 Q 4 20 Q 1 21 Q 2 21 Q 3 21 Q 4 21 Q 1
Slide 8: Inspire Therapy is a Proven Solution for Patients with OSA
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Inspire Therapy is a Proven Solution for Patients with OSA Inspire System 1 2 3 Three implanted devices and patient remote: Pressure sensing lead: detects when the patient is attempting to breathe Neurostimulator: houses the el
Slide 9: SleepSync Digital Health Platform
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL SleepSync™ Digital Health Platform Accelerates growth by expanding confidence & efficiency, helping more patients benefit from Inspire Patient Inspire App Clinician SleepSync™ Web Portal Remote patient management Dynamic patien
Slide 10: Three Key Areas Will Drive Our Success In 2024 & Beyond
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Three Key Areas Will Drive Our Success In 2024 & Beyond 10 Patient Flow Capacity Outcomes • New Website (www.inspiresleep.com) launched in Dec 2023 will significantly improve Patient Education & Lead Capture • Refined Direct-to
Slide 11: Patient Outreach Program
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL *video 2 Patient Outreach Program
Slide 12: Inspire's Focus is to Maintain Strong Patient Outcomes
Inspire’s Focus is to Maintain Strong Patient Outcomes 33.0 7.8 10.2 0 5 10 15 20 25 30 35 Baseline (n=1,963) 6-mo Titration Study (n=1,852) 12-mo All Night Study (n=890) M e d ia n A H I ( e ve n ts /h o u r) Apnea Hypopnea Index (AHI1) AHI response at 12 Month AHI </= 20 and 50% reduction: 67% AHI
Slide 13: Inspire Patient Experience Report - Safety
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Inspire Patient Experience Report - Safety Inspire System Survivability to Revision by Implant Year Inspire System Survivability to Explant by Implant Year 13 90% 91% 92% 93% 94% 95% 96% 97% 98% 99% 100% 0 6 12 18 24 30 36 42 4
Slide 14: Inspire Mechanism of Action and Indication
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Inspire Mechanism of Action and Indication Indication: Tongue Base Collapse Contraindication: Lateral Wall Collapse Inspire indication: • AHI up to 100; average AHI treated 321 • BMI up to 40; average BMI treated 28.41 In compa
Slide 15: PREDICTOR Study
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL PREDICTOR Study: Primary purpose is to replace DISE with office-based measurement for majority of Patients 15 • Prospective, multicenter study • Inspire candidates; N=300+300 • 2nd group enrollment complete Q1 2024 • Supine pha
Slide 16: High BMI and PREDICTOR Study: LWC and CCC
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL High BMI and PREDICTOR Study: Lateral Wall Collapse (LWC) and Complete Concentric Collapse (CCC) • Independent variables significant in univariate analysis in first 300 patients showed: • Each unit increase in BMI 14% decreas
Slide 17: Policy Reviews with Inspire Indication Expansions
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Policy Reviews with Inspire Indication Expansions • Several payers have already reviewed and updated policies for: • AHI increase to 100 from 65; BMI warning to 40 from 32; & Pediatrics with Down syndrome • Alternative evaluati
Slide 18: Our Growth Strategy
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Our Growth Strategy Through planned and controlled market expansion and robust physician training Ensure Strong Clinical Outcomes 1 By enhancing interconnectivity, simplifying the care pathway, and closely tracking outcomes Imp
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Slide 20: Appendix
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Appendix 20
Slide 21: Obstructive Sleep Apnea is a Serious and Chronic Disease
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Obstructive Sleep Apnea is a Serious and Chronic Disease OSA is Caused by a Blocked or Partially Blocked Airway • Blockage prevents airflow to the lungs • Results in repeated arousals and oxygen de-saturations • Severity of sle
Slide 22: Current Treatment Options Have Significant Limitations
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Current Treatment Options, Such as CPAP and Invasive Surgery, Have Significant Limitations Ina Uvulopalatopharyngoplasty (UPPP) Maxillomandibular Advancement (MMA) • Several variations of sleep surgery • Success rates vary wide
Slide 23: Company Overview
Company Overview • Inspire is the first and only FDA-approved neurostimulation technology for Obstructive Sleep Apnea (OSA) with significant first-mover advantage • Innovative, closed-loop, primary cell solution with ~11-year battery life • ~90-minute, safe, convenient, minimally invasive outpatient
Slide 24: Strong Management Team
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Randy Ban Chief Commercial Officer Bryan Phillips SVP, General Counsel & Chief Compliance Officer Tim Herbert President, CEO & Founder Strong Management Team Ezgi Yagci Vice President, Investor Relations Rick Buchholz Chief Fin
Slide 25: A Strong Market Opportunity Exists for an Alternative to CPAP
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL A Strong Market Opportunity Exists for an Alternative to CPAP that is Effective and Minimally Invasive Sleep apnea affects +100 million people worldwide1 Approximately 17 million individuals in the U.S. with moderate to sev
Slide 26: Continuous Data Collection and Outcomes Monitoring
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Continuous Data Collection and Outcomes Monitoring • Collect real-world, international outcomes data • Eligibility – ALL patients receiving Inspire therapy • ADHERE Registry - 5,000 enrollments at 62 medical centers (enrollment
Slide 27: Keeping Control While Growing Fast
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL KEEPING CONTROL WHILE GROWING FAST Focus on the rapid scaling of commercialization (implanting centers and sales reps) while ensuring proper training to maintain control of high-quality therapy outcomes The Great Balancing Act
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