Inspire Medical Systems, Inc. · NYSE:INSP
Inspire Medical Systems — Investor Presentation (May 2021)
45 slides from Inspire Medical Systems's investor presentation, May 5, 2021
Slide 1: Inspire Medical Systems, Inc. May 2021
1 In sp ir e M e d ic a l S y st e m s, I n c . M a y 2 0 2 1 N Y S E : IN S P
Slide 2: Disclaimer
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L D is c la im e r T h is p re s e n ta ti o n c o n ta in s f o rw a rd -l o o k in g s ta te m e n ts w ith in t h e m e a n in g o f th e P ri v a te S e c u ri tie s L iti g a tio n R
Slide 3: s R L
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L 3
Slide 4: Focus on a Strong Start to 2021
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L Fo c u s o n a S tr o n g S ta rt t o 2 0 2 1 !! ! U pd at ed F Y 20 21 G ui da nc e: Re ve nu e: $ 19 2M - $1 96 M , r ep re se nt in g 66 % - 70 % g ro w th fr om F Y 20 20 re ve nu e
Slide 5: COVID-19 monitoring and impact
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L W e co nt in ue to c lo se ly m on it or C O V ID -1 9 in cl ud in g: W e ex pe ri en ce d ca nc el at io ns o r de la ys in c as es in e ar ly 2 02 1 in s el ec t st at es (N or th ea s
Slide 6: Significant Business Progress Since IPO
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L Si g n ifi c a n t B u si n e ss P ro g re ss S in c e I P O : St ro n g Fo u n d a tio n in P la c e t o D ri v e G re a te r P e n e tr a tio n C li n ic a l P h a s e R e g u la to ry
Slide 7: Commercial Execution: Opportunity to Accelerate Interest and Conversion
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L Q ua lif yi ng In te re st D ri vi ng C on ve rs io n G en er at in g In te re st Se le ct iv el y Ex pa nd in g D TC A dv er ti si ng C o m m e rc ia l E x e c u ti o n : O p p o rt u n
Slide 8: Inspire is an Innovative Neurostimulation Solution for Moderate to Severe OSA
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L In sp ir e is a n I n n o v a tiv e N e u ro st im u la tio n S o lu tio n f o r M o d e ra te t o S e v e re O b st ru c tiv e S le e p A p n e a ( O SA ) F ir st a n d o n ly F D A -a
Slide 9: Strong Management Team
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L St ro n g M a n a g e m e n t Te a m T im H e rb e rt P re s id e n t, C E O & F o u n d e r 3 0 + Y e a rs o f E x p e ri e n c e R ic k B u c h h o lz C h ie f F in a n c ia l O ff ic
Slide 10: OSA is a Serious and Chronic Disease
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L O SA is a S e ri o u s a n d C h ro n ic D is e a se O S A i s C a u s e d b y a B lo c k e d o r P a rt ia ll y B lo c k e d A ir w a y • B lo ck a g e p re v e n ts a ir fl o w t o t h
Slide 11: Current Treatment Options Have Significant Limitations
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L C u rr e n t Tr e a tm e n t O p tio n s, S u c h a s C P A P a n d I n v a si v e Su rg e ry , H a v e S ig n ifi c a n t Li m ita tio n s In a U vu lo pa la to ph ar yn go pl as ty (U
Slide 12: A Strong Market Opportunity Exists for an Alternative to CPAP
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L A S tr o n g M a rk e t O p p o rt u n it y E x is ts f o r a n A lt e rn a tiv e t o C P A P t h a t is E ff e c tiv e a n d M in im a lly I n v a si v e Sl ee p ap ne a af fe ct s +1 0
Slide 13: Inspire Therapy is a Proven Solution for Patients with OSA
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L In sp ir e T h e ra p y is a P ro v e n S o lu tio n fo r P a tie n ts w ith O SA In sp ir e Sy st em 1 2 3 In sp ir e Pr oc ed ur e A pp ro xi m at el y a tw o- ho ur o ut pa ti en t p
Slide 14: Inspire Therapy is a Safe and Effective Solution
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L In sp ir e T h e ra p y is a S a fe a n d E ff e c tiv e S o lu tio n M ild S ti m ul at io n is a C le ar M ec ha ni sm o f A ct io n St ro ng s af et y pr of ile Ef fe ct iv e an d du
Slide 15: Objective Measures Show the Impact of Inspire Therapy on OSA
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L O b je c tiv e M e a su re s Sh o w t h e I m p a c t o f In sp ir e Th e ra p y o n O SA In sp ir e sy st em tu rn ed o n A ir fl ow B re at hi ng O xy ge n Sa tu ra ti on N o O SA e ve
Slide 16: Clinical Evidence
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L C lin ic a l E v id e n c e 1 6
Slide 17: Significant Body of Clinical Evidence
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L Si g n ifi c a n t B o d y o f C lin ic a l E v id e n c e E v a lu a ti n g I n sp ir e in m o re t h a n 2 ,5 0 0 P a tie n ts , in 1 5 0 + p a p e rs 1. D ue to t he in cl us io n of
Slide 18: STAR Trial Met Both Primary Endpoints
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L ST A R T ri a l M e t B o th P ri m a ry E n d p o in ts & S h o w e d S ta tis tic a lly Si g n ifi c a n t R e d u c tio n s in A H I & O D I Si gn if ic an t R ed uc ti on in S ev er
Slide 19: Additional STAR Findings Showed Improvement in Quality of Life Metrics
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L 30 % 5% 4% 3% 1% Ba se lin e N =1 08 12 M o. N =1 03 18 M o. N =1 03 3 Yr . N =1 00 5 Yr . N =8 0 17 % 86 % 87 % 81 % 90 % Ba se lin e N =1 08 12 M o. N =1 03 18 M o. N =1 03 3 Yr . N =1
Slide 20: Summary of Inspire Clinical Studies
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L Su m m a ry o f In sp ir e C lin ic a l S tu d ie s ST A R Tr ia l1 G er m an P os t- M ar ke t St ud y1 A D H ER E Pa ti en t Re gi st ry 1 TJ U H a nd U PM C Ev al ua ti on 2 # of In s
Slide 21: ADHERE Patient Registry
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L W e I n te n d t o C o n ti n u e t o B u ild t h e D e p th o f O u r C lin ic a l D a ta w ith O u r A D H ER E P a ti e n t R e g is tr y Re gi st ry R es ul ts f ro m 1 ,0 17 P at ie
Slide 22: Reimbursement
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L R e im b u rs e m e n t 2 2
Slide 23: AMA Grants Approval for New Category I Procedure Codes
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L A M A G ra n ts A p p ro v a l f o r N e w , C a te g o ry I P ro c e d u re C o d e s • H yp og lo ss al N er ve S ti m w ill n o lo ng er s ha re P ro ce du re C od es w it h Va gu s N
Slide 24: Covered Lives Summary
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L C o v e re d L iv e s Su m m a ry La rg e In su ra nc e Pl an s • U ni te d H ea lt hc ar e: 4 1M • A et na : 22 M • H um an a: 1 7M • Ci gn a: 1 6M • A nt he m : 40 M – co nt in ue to o
Slide 25: Medicare Local Coverage Determination (LCD)
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L M e d ic a re L o c a l C o v e ra g e D e te rm in a tio n ( LC D ) C o m p le te d a n d I n -P la c e - A ll c o v e ra g e c ri te ri a c o n si st e n t in a ll 5 0 s ta te s M A C
Slide 26: Product Development and Digital Health
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L P ro d u c t D e v e lo p m e n t a n d D ig ita l H e a lth 2 6
Slide 27: Inspire Digital Health
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L In sp ir e D ig it a l H e a lt h D e fin iti o n Co nn ec te d to ol s fo r Sl ee p D oc s, S ur ge on s, a nd P at ie nt s th at im pr ov e ou tc om es a nd r ed uc e w or k. • Co lla
Slide 28: Foundational Customer Needs
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L Fo u n d a tio n a l C u st o m e r N e e d s O p p o rt u n it ie s to C re a te B ra n d P re fe re n c e 2 8 EN T Su rg eo n • St ro ng , P re di ct ab le Pa ti en t O ut co m es • Sp
Slide 29: Sleep MD Landscape
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L Th e re a re 6 ,0 0 0 B o a rd C e rt ifi e d S le e p M D s in t h e U S O v e r 9 0 % a re a w a re o f In sp ire Le ss t h a n 4 0 % a re c u rr e n tl y re fe rr in g f o r In sp ire
Slide 30: What they think about CPAP and Inspire
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L W ha t th ey t hi nk a bo ut C PA P W ha t th ey t hi nk a bo ut In sp ir e Pa ti en t Tr ea te d O SA Pe rc ei ve d to b e: • In va si ve • Co st ly • Co m pl ex Sl ee p M D s N ee d Fa
Slide 31: CPAP History: A Proven Model
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L C P A P H is to ry : A p ro v e n m o d e l CP A P In ve nt ed G am e ch an gi ng n ew t he ra py In cr ea se d Co m fo rt Fi rs t n as al p ill ow Ea se o f U se In te gr at ed h um id
Slide 32: Inspire System
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L 2 0 2 1 I n sp ir e S y st e m B lu e to o th ® U S B : fl a sh d ri ve H os pi ta l P C or W eb B ro w se r In d u ct iv e T e le m e tr y B lu e to o th ® In sp ir e Cl ou d In te rn e
Slide 33: Digital Pipeline 2020/2021
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L 20 20 Q 2 Q 3 Q 4 20 21 Q 2 Q 3 D ig ita l P ip e lin e 2 0 2 0 /2 0 2 1 20 20 /2 02 1 • Pa ti en t ed uc at io n tr ac ki ng • Co lla bo ra tiv e pa ti en t sc re en in g • V ir tu al p
Slide 34: Market Development
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L M ar ke t D ev el op m en t D ir ec t- to -P at ie nt C ha nn el s / Se lf -R ef er re d In sp ir e Pr og ra m Co re T ea m Sl ee p Pr ac ti ce R ef er a nd M an ag e Sl ee p Pr ac ti ce
Slide 35: DTC Program: Strategic Pillars
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L D TC P ro g ra m : St ra te g ic P ill a rs # 3 : C o n v e rt t o A p p o in tm e n t # 1 : D ri v e E ff ic ie n t A w a re n e s s # 2 : E d u c a te & S e g m e n t IS .c o m # 4 : C
Slide 36: Advisor Care Program (ACP)
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L A d v is o r C a re P ro g ra m ( A C P ) C o n n e c tin g Q u a lif ie d P a tie n ts D ir e c tly t o o u r C e n te rs 3 6 P a ti e n t c a ll s n u m b e r o n M D L is ti n g C a l
Slide 37: Holistic Approach to Engagement Across Key Stakeholders
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L H ol is ti c A pp ro ac h to E ng ag em en t A cr os s Ke y St ak eh ol de rs in t he O SA T re at m en t Pa ra di gm U .S . S al es O rg an iz at io n 11 7 Te rr ito ri es in U .S . a n
Slide 38: Territory Manager Strategy
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L Te rr it or y M an ag er S tr at eg y K e y s To D ri v in g a S tr o n g T e rr ito ry H ow T M s Sp en d th ei r Ti m e Fi nd T he Ri gh t Ce nt er s At te nd D IS E, Ca se s & Fo llo
Slide 39: Keeping Control While Growing Fast
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L KE EP IN G C O N TR O L W H IL E G RO W IN G F A ST Fo cu s on t he ra pi d sc al in g of c om m er ci al iz at io n w hi le e ns ur in g pr op er t ra in in g to m ai nt ai n co nt ro l
Slide 40: Financials
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L Fi n a n c ia ls 4 0
Slide 41: Quarterly Revenue
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L $3 .0 $3 .6 $4 .7 $5 .2 $5 .3 $6 .0 $7 .3 $1 0. 0 $1 0. 0 $1 0. 9 $1 3. 1 $1 6. 6 $1 6. 3 $1 8. 0 $2 0. 9 $2 6. 9 $2 1. 3 $1 2. 2 $3 5. 8 $4 6. 0 $4 0. 4 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q
Slide 42: Q1 2021 Performance
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L $2 1. 3 $4 0. 4 Q 1 20 20 Q 1 20 21 Yo Y Re ve nu e ($ in m ill io ns ) Yo Y In cr ea se : 8 9% Yo Y G ro ss M ar gi n Yo Y In cr ea se : 6 0b ps Q 1 2 0 2 1 P e rf o rm a n c e 84 .6 %
Slide 43: Annual Revenue and Gross Margin; 2021 Guidance
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L $1 6. 4 $2 8. 6 $5 0. 6 $8 2. 1 $1 15 .4 G ui da nc e $1 92 -1 96 20 16 20 17 20 18 20 19 20 20 20 21 20 16 – 20 20 C A G R : 6 2. 9% A n n u a l R e v e n u e a n d G ro ss M a rg in ($
Slide 44: Our Growth Strategies
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L O u r G ro w th S tr a te g ie s En su re s tr on g an d co ns is te nt p at ie nt o ut co m es g lo ba lly t hr ou gh p la nn ed a nd co nt ro lle d ex pa ns io n an d ro bu st p hy si
Slide 45: Compelling Market Opportunity and Inspire Solution
© I n s p ir e M e d ic a l S y s te m s , In c . A ll R ig h ts R e s e rv e d IN S P IR E C O N F ID E N T IA L La rg e an d gr ow in g pr ev al en ce o f O SA Si gn if ic an t ec on om ic c os t of u nt re at ed O SA U rg en t cl in ic al n ee d fo r an ef fe ct iv e al te rn at iv e to CP A P ~$
Inspire Medical Systems — Investor Presentation (May 2021) on 6ix