Inspire Medical Systems, Inc. · NYSE:INSP
Inspire Medical Systems — Q1 2024 Earnings Presentation
34 slides from Inspire Medical Systems's earnings presentation, May 7, 2024
Slide 1: Inspire Medical Systems, Inc. May 2024
Inspire Medical Systems, Inc. May 2024 NYSE: INSP
Slide 2: Disclaimer
© Inspire Medical Systems, Inc. All Rights Reserved. Disclaimer 2 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 statements. In some cases,
Slide 3: Company Overview
© Inspire Medical Systems, Inc. All Rights Reserved. Company Overview The first and only… 3 >280 PUBLICATIONS Compelling body of evidence >260 MILLION U.S. COVERED LIVES Established reimbursement in all 50 states >1,000 EMPLOYEES Led by a proven management team >$625 MILLION REVENUE IN 2023 With 40%
Slide 4: Our History and Key Milestones
© Inspire Medical Systems, Inc. All Rights Reserved. Company Overview Our History and Key Milestones 4 20222016 20202007 2014 2018 20232017 20212011 • Inspire is founded after being spun out of Medtronic • Initiated Phase III pivotal STAR trial • STAR results published in the New England Journal of
Slide 5: Obstructive Sleep Apnea is Caused by Blockage that Prevents Airflow to the Lungs
© Inspire Medical Systems, Inc. All Rights Reserved. Obstructive Sleep Apnea is Caused by Blockage that Prevents Airflow to the Lungs 5 Airway obstruction during breathing Typical OSA event • Results in repeated arousals and oxygen desaturations • Severity of sleep apnea is measured by frequency of
Slide 6: OSA is a Chronic Disease That is Often Untreated and Linked to Serious Health Risks
© Inspire Medical Systems, Inc. All Rights Reserved. OSA is a Chronic Disease That is Often Untreated and Proven to be Linked to Serious Health Risks 6 Exacerbated Health Risks • High risk patients: obese, male or of advanced age • Common first indicator: heavy snoring • Other indicators: • Lack of
Slide 7: Current Treatment Options, Such As CPAP and Invasive Surgeries, Have Significant Limitations
© Inspire Medical Systems, Inc. All Rights Reserved. Current Treatment Options, Such As CPAP and Invasive Surgeries, Have Significant Limitations 7 InaUvulopalatopharyngoplasty (UPPP) Maxillomandibular Advancement (MMA) • Several variations of sleep surgery • Success rates vary widely (30% - 60%)1 •
Slide 8: Strong Market Opportunity Exists for an Alternative to CPAP
© Inspire Medical Systems, Inc. All Rights Reserved.8 Strong Market Opportunity Exists for an Alternative to CPAP that is Effective and Minimally Invasive 1. Source: World Health Organization. 2. Company estimates. 3. Represents moderate to severe OSA. Source: McKinsey & Company, 2010. Adults with M
Slide 9: Compared to CPAP, Inspire Better at Improving OSA Symptoms
© Inspire Medical Systems, Inc. All Rights Reserved. Compared to CPAP, Inspire has been Demonstrated to be Better at Improving OSA Symptoms, Potentially with Greater Therapy Adherence 9 Therapy Adherence1 4.0 5.0Usage/Night (hours) 1. Heiser, Sleep & Breathing 2022 Comparison between baseline and 12
Slide 10: Inspire Therapy is an Innovative and Proven Solution for Patients with OSA
© Inspire Medical Systems, Inc. All Rights Reserved.10 Inspire Therapy is an Innovative and Proven Solution for Patients with OSA ProcedureSystem Three implanted devices and patient remote: Pressure sensing lead: detects when the patient is attempting to breathe Neurostimulator: houses the electroni
Slide 11: Inspire Therapy Utilizes a Proprietary Closed-loop Sensing Algorithm
© Inspire Medical Systems, Inc. All Rights Reserved.11 Inspire Therapy Utilizes a Proprietary Closed-loop Sensing Algorithm to Modulate Therapy Delivery Active while patients sleep Closed-loop system which senses breathing patterns Provides stimulation during inspiratory phase of respiration m
Slide 12: The Inspire Patient Journey
Sleep Test (In-lab or home) Activation Procedure Drug-induced Sleep Endoscopy Happy Patients! Patient Awareness, Self Education (Including HCP referral) Appointment Sleep & ENT Efficacy Check Clinic Adjustments Prior Authorization The Inspire Patient Journey Multi-specialty care continuum 1 2 3[1] Q
Slide 13: Three Key Areas Will Drive Our Success in 2024 & Beyond
© Inspire Medical Systems, Inc. All Rights Reserved.13 Three Key Areas Will Drive Our Success in 2024 & Beyond Quality Patient Flow Care Pathway Capacity Strong Clinical Outcomes • Improve patient education & lead capture via new website launch in Dec 2023 • Refine Direct-to-Consumer outreach • Acce
Slide 14: >65K Patients Treated with Inspire Therapy
© Inspire Medical Systems, Inc. All Rights Reserved. >65K Number of patients treated with Inspire therapy to date ~ 16 minutes between implants Q1 2024 14
Slide 15: Continuous Data Collection and Outcomes Monitoring
© Inspire Medical Systems, Inc. All Rights Reserved. • Collect real-world, international outcomes data • Eligibility – ALL patients receiving Inspire therapy • ADHERE Registry - 5,000 enrollments at 62 medical centers (enrollment complete) • Transition to ADHERE 2.0 as part of Inspire SleepSync in t
Slide 16: Inspire Patient Experience Report - Safety
© Inspire Medical Systems, Inc. All Rights Reserved. 90% 91% 92% 93% 94% 95% 96% 97% 98% 99% 100% 0 6 12 18 24 30 36 42 48 54 60 Su rv iv al P ro ba bi lit y Pe rc en ta ge Months After Implant 2018 2019 2021 2022 90% 91% 92% 93% 94% 95% 96% 97% 98% 99% 100% 0 4 8 12 16 20 24 28 32 36 40 44 48 52 56
Slide 17: Inspire's Focus is to Maintain Strong Patient Outcomes
© Inspire Medical Systems, Inc. All Rights Reserved.17 Inspire’s Focus is to Maintain Strong Patient Outcomes AHI response at 12 Month AHI </= 20 and 50% reduction: 67% AHI </= 20: 76% 50% reduction in AHI: 69% 1. Bosschieter et al. Similar effect of hypoglossal nerve stimulation for OSA in five dis
Slide 18: SleepSync Digital Health Platform Accelerates Growth
© Inspire Medical Systems, Inc. All Rights Reserved. • Electronic medical records (Future) • Sleep coaching, telemedicine, and efficient home sleep apnea testing Enhanced by Strategic Integrations Growing Inspire Value • Expanding sleep clinician confidence & capacity enables more patients to benefi
Slide 19: Annual Revenue and Gross Margin; 2024 Guidance
© Inspire Medical Systems, Inc. All Rights Reserved. $51 $82 $115 $233 $408 $625 2018 2019 2020 2021 2022 2023 19 Annual Revenue and Gross Margin ($ in Millions) Annual Gross Margin 80.1% 83.4% 84.7% 85.7% 83.8% 84.5% 2024 Guidance: • FY2024 revenue range of $783M-$793M, representing 25%-27% growth
Slide 20: Q1 Business Highlights
© Inspire Medical Systems, Inc. All Rights Reserved.20 Q1 Business Highlights (As of March 31, 2024) • Activated 66 new centers in the U.S. bringing the total to 1,246 U.S. centers providing Inspire therapy • Created 11 new sales territories in the U.S. bringing the total to 298 U.S. sales territori
Slide 21: Our Growth Strategy
© Inspire Medical Systems, Inc. All Rights Reserved. Our Growth Strategy 21 1 Through planned and controlled market expansion and robust physician training Ensure Strong Clinical Outcomes 2 By enhancing interconnectivity, simplifying the care pathway, and closely tracking outcomes Improve the Custom
Slide 22: Inspire Way
Inspire Way We are a medical technology company committed to enhancing patient lives through sleep innovation “Put the patient first and you will never lose your way.” Demonstrate Operational Excellence Drive Therapy Adoption Strengthen Organizational Culture Focused on Outcomes. Fueled by Innovatio
Slide 23: No mask. No hose. Just sleep.
No mask. No hose. Just sleep.”
Slide 24: Appendix
© Inspire Medical Systems, Inc. All Rights Reserved. Appendix 24
Slide 25: Consolidated Statements of Operations & Comprehensive Loss (Unaudited)
© Inspire Medical Systems, Inc. All Rights Reserved. Consolidated Statements of Operations & Comprehensive Loss (Unaudited)(In thousands, except share and per share amounts) 25
Slide 26: Condensed Consolidated Balance Sheets (Unaudited)
© Inspire Medical Systems, Inc. All Rights Reserved. Condensed Consolidated Balance Sheets (Unaudited)(In thousands) 26
Slide 27: Quarterly Revenue
© Inspire Medical Systems, Inc. All Rights Reserved. $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 $164.0 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 27 Quarterly Revenue ($
Slide 28: Strong Management Team
© Inspire Medical Systems, Inc. All Rights Reserved. Randy Ban Chief Commercial Officer Bryan Phillips SVP, General Counsel & Chief Compliance Officer Tim Herbert Chair, President & Chief Executive Officer Strong Management Team Ezgi Yagci Vice President, Investor Relations Rick Buchholz Chief Finan
Slide 29: Supporting Patients on their Path to Inspire Implant
© Inspire Medical Systems, Inc. All Rights Reserved. Supporting Patients on their Path to Inspire Implant Fine- tune ActivationInspire Advisor Care Program (ACP) DISE/ Prior Authorization Patient education using the InspireSleep.com website Community health talks Physician Consultations Awareness wi
Slide 30: The Patient Journey
© Inspire Medical Systems, Inc. All Rights Reserved. Inspire Patient THE PATIENT JOURNEY Awareness Education Consultation Implant Life w/ Inspire Confirm Sleep Study Fine- tuneActivationImplantPrior AuthDISE Conduct Online Search Attend Appt. Schedule an Appt. with IS Dr. Obtain Updated Sleep Study
Slide 31: Patient Engagement Conversion Initiatives
© Inspire Medical Systems, Inc. All Rights Reserved. Patient Engagement Conversion Initiatives Improving Patient Engagement Conversion Initiatives Increasing ENT Capacity to Further Grow Utilization SleepSync Patient Management System Increases Utility • Digital scheduling has shown significant impr
Slide 32: Health Economics: Untreated OSA Cost Burden
Health Economics: Untreated OSA Cost Burden • Untreated OSA patients had ~$20,000 higher total annual Medicare costs • CPAP intolerant patients had higher Medicare utilization than PAP tolerant ALASKA-Study – non-adherent patients have greater chance of mortality (n>176,000)2 PAP non- adherent PAP a
Slide 33: Sustainability at Inspire
© Inspire Medical Systems, Inc. All Rights Reserved. Sustainability at Inspire 33 Committed to improving the economic, social, and environmental impacts that our business has on the communities in which we operate, as well as our customers, business partners, suppliers, employees, and stockholders.
Slide 34: Our Intellectual Property Portfolio
© Inspire Medical Systems, Inc. All Rights Reserved. Our Intellectual Property Portfolio (as of December 31, 2023) Covers aspects of our current Inspire system and future product concepts 80 issued U.S. patents (expiring between 2029 and 2041) and 81 pending U.S. patent applications 55 issued
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