Inspire Medical Systems, Inc. · NYSE:INSP

Inspire Medical Systems — Investor Presentation (May 2023)

36 slides from Inspire Medical Systems's investor presentation, May 2, 2023

  1. Slide 1: Inspire Medical Systems, Inc. May 2023

    Inspire Medical Systems, Inc. May 2023 NYSE: INSP 1

  2. 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

  3. Slide 3: Company Overview

    © Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL 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 b

  4. Slide 4: 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

  5. Slide 5: Current Treatment Options, Such as CPAP and Invasive Surgery, 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

  6. Slide 6: 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

  7. Slide 7: UAS is Safer than Traditional Sleep Surgery

    © Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL UAS is Safer than Traditional Sleep Surgery (UAS n=1,201; Palate n=3,364; MLS n=492) UAS has 4% risk of readmission vs ~15-20% UAS 2% complication rate vs 15-20% Nord et al, Comparison of Readmission and Complication Rates Betw

  8. Slide 8: UAS has similar AHI improvement as CPAP, and lower symptoms & disease burden

    © Inspire Medical Systems, Inc. All Rights Reserved UAS has similar AHI improvement as CPAP, and lower symptoms & disease burden Population: New UAS (n=117) and CPAP (n=110) pts Follow-up: 12 months Inclusion of both arms • Sleepiness Symptoms • AHI between 15-65 • Predominant OSA Statistically Matc

  9. Slide 9: 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

  10. Slide 10: Unified Patient Management Platform

    © Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Unified Patient Management Platform Inspire SleepSync™ InspireSleep App Programmer Remote Inspire Cloud Inspire IV/V Stimulator 10

  11. Slide 11: 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 - 4,800 enrollments at 62 medical centers with enroll

  12. Slide 12: Inspire Patient Experience Report - Safety

    © Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL 96.0% 96.5% 97.0% 97.5% 98.0% 98.5% 99.0% 99.5% 100.0% 0 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 Cu m ul at iv e Su rv iv al P er ce nt ag e Months After Implant 2018 2020 2019 2021 2022 Inspire Patient Experience

  13. Slide 13: Inspire focus is to maintain strong Patient Outcomes

    © Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Inspire 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 ed ia n AH I ( ev en ts /h ou r) Apnea Hypopnea Index (A

  14. Slide 14: 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

  15. Slide 15: 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 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Q422 Q123 ____________________ Quarterly amounts are u

  16. Slide 16: Annual Revenue and Gross Margin

    © Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL $28.6 $50.6 $82.1 $115.4 $233.4 2017 2018 2019 2020 2021 2022 2017 – 2022 CAGR: 70% Annual Revenue and Gross Margin ($ in millions) Annual Gross Margin 78.9% 80.1% 83.4% 84.7% 85.7% 83.8% 2023 Guidance: • FY2023 revenue range o

  17. Slide 17: Steady Cadence of New Center Adds

    © Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Steady Cadence of New Center Adds 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 0 200 400 600 800 1000 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20

  18. Slide 18: DTC Program: Strategic Pillars

    © Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL DTC Program: Strategic Pillars #3: Convert to Appointment #1: Drive Efficient Awareness #2: Educate & Segment IS.com #4: Support Inspire implant and longitudinal follow-up National DTC campaign >78k physician contacts in 2022 2

  19. Slide 19: Q1 Business Highlights

    © Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Q1 Business Highlights (As of March 31, 2023) • Generated $127.9 million of revenue in the first quarter • An 84% increase over the same quarter last year • Gross margin of 84.4% • Gross margin impacted by higher costs of certa

  20. Slide 20: Upcoming Catalysts

    © Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL 2024 2025 & Beyond 2023 • Neurostimulator replacements of initial commercial units • ~11-year battery life • Inspire V launch in the U.S. • Sensor incorporated inside the IPG • Removes need for pressure sensing lead  Pediatric

  21. Slide 21: Our Growth Strategy

    © Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Our Growth Strategy • Ensure strong and consistent patient outcomes globally through planned and controlled market expansion and robust physician training • Strong investments in the Inspire technology to further improve the pa

  22. Slide 22: INSPIRE ™

    © Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL ™ 22

  23. Slide 23: Appendix

    © Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Appendix 23

  24. Slide 24: Consolidated Statements of Operations & Comprehensive Loss

    © Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Consolidated Statements of Operations & Comprehensive Loss (Unaudited)(In thousands, except share and per share amounts) 24

  25. Slide 25: Condensed Consolidated Balance Sheets

    © Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Condensed Consolidated Balance Sheets (Unaudited)(In thousands) 25

  26. Slide 26: Strong Management Team

    © Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL 30+ Years of Experience incl. 16 years at Inspire Randy Ban Chief Commercial Officer 25+ Years of Experience incl. 9 years at Inspire 25+ Years of Experience Incl. 14 years at Inspire 20+ Years of Experience Incl. 3 years at In

  27. Slide 27: Product Development and Digital Health

    © Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Product Development and Digital Health 27

  28. Slide 28: Advisor Care Program (ACP)

    © Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Advisor Care Program (ACP) Connecting Qualified Patients Directly to our Centers Patient calls number on MD Listing Call connected to Inspire Advisor Inspire Advisor calls clinic; Connects patient with LIVE scheduler Turning Pa

  29. Slide 29: Digital Scheduling through ACP

    © Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Digital Scheduling through ACP Facilitating Patient-Clinic Scheduling without Call to Clinic Patient facing webpage integrated to Electronic Medical Record (EMR) to schedule on the website ACP stays on the phone with the patien

  30. Slide 30: Ognomy Pilot through ACP

    © Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Ognomy Pilot through ACP If a patient calls a pilot clinic with an out-of-date sleep study ACP Advisor will Make TWO Appointments for the Patient Telemedicine Appointment to get an Updated Sleep Study (HST) Inspire Consultation

  31. Slide 31: Market Development

    © Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Market Development 31

  32. Slide 32: Commercial Organization

    © Inspire Medical Systems, Inc. All Rights Reserved Chief Commercial Officer Commercial Organization U.S. Sales Team Patient Outcomes Team Territory Managers Field Clinical Reps Area Business Managers Sleep Support Specialists Surgical Trainers Care Pathway Specialists 32

  33. Slide 33: Sales Area Structure

    © Inspire Medical Systems, Inc. All Rights Reserved 9 Area Vice Presidents Sales Area Structure Area Business Managers (ABM) Regional Managers (RM) Territory Managers (TM) Field Clinical Reps (FCR) • One per area • Open new accounts • 3-5 per area • Coaching • C-Suite Engagement • 5-8 per region • P

  34. Slide 34: 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

  35. Slide 35: Environmental, Social and Governance (ESG)

    © Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Environmental, Social and Governance (ESG) ENVIRONMENTAL Committed to operating our business responsibly and minimizing our impact on the environment wherever possible. • By 2025, we aim to implement a formal environmental qual

  36. Slide 36: Our Intellectual Property Portfolio

    © Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Our Intellectual Property Portfolio (as of December 31, 2022)  Covers aspects of our current Inspire system and future product concepts  66 issued U.S. patents (expiring between 2023 and 2040) and 80 pending U.S. patent appli

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