Inspire Medical Systems, Inc. · NYSE:INSP
Inspire Medical Systems — Investor Presentation (August 2023)
36 slides from Inspire Medical Systems's investor presentation, Aug 1, 2023
Slide 1: Inspire Medical Systems, Inc. August 2023
Inspire Medical Systems, Inc. August 2023 NYSE: INSP 1
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: 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
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
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
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
Slide 7: Inspire is Safer than Traditional Sleep Surgery
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Inspire is Safer than Traditional Sleep Surgery (Inspire n=1,201; Palate n=3,364; MLS n=492) Inspire has 4% risk of readmission vs ~15-20% Inspire has 2% complication rate vs 15-20% Nord et al, Comparison of Readmission and Com
Slide 8: Inspire has similar AHI improvement as CPAP, and lower symptoms & disease burden
© Inspire Medical Systems, Inc. All Rights Reserved Inspire 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
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
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
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
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
Slide 13: Inspire focus is to maintain strong Patient Outcomes
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 (AHI1) AHI response at 12 Month AHI </= 20 and 50% reduction: 67% AHI </= 2
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
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 $151.1 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Q422 Q123 Q223 ____________________ Quarterly a
Slide 16: Annual Revenue and Gross Margin; 2023 Guidance
© 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
Slide 17: 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 0 200 400 600 800 1000 1200 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 Q1 21 Q2 21 Q3 21 Q4 21 Q1
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
Slide 19: Q2 Business Highlights
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Q2 Business Highlights (As of June 30, 2023) • Generated $151.1 million of revenue in the second quarter • A 65% increase over the same quarter last year • Gross margin of 83.9% • Gross margin impacted by additional manufacturi
Slide 20: 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 • Further improve the patient and caregiver experience by making strong
Slide 21: INSPIRE ™
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL ™ 21
Slide 22: Appendix
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Appendix 22
Slide 23: 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) 23
Slide 24: Condensed Consolidated Balance Sheets
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Condensed Consolidated Balance Sheets (Unaudited)(In thousands) 24
Slide 25: 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 26: Product Development and Digital Health
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Product Development and Digital Health 26
Slide 27: Supporting Patients on their Path to Inspire Implant
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Supporting Patients on their Path to Inspire 27 Implant Fine- tune ActivationInspire Advisor Care Program (ACP) DISE/ Prior Authorization Patient education using the InspireSleep.com website Community health talks Physician Con
Slide 28: Inspire Patient Journey
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Inspire Patient T H E P A T I E N T J O U R N E Y Awareness Education Consultation Implant Life w/ Inspire Confirm Sleep Study Fine- tuneActivationImplantPrior AuthDISE Conduct Online Search Attend Appt. Schedule an Appt. with
Slide 29: Patient Engagement Conversion Initiatives
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Patient Engagement Conversion Initiatives 29 Improving Patient Engagement Conversion Initiatives Increasing ENT Capacity to Further Grow Utilization SleepSync™ Patient Management System increase Utility • Digital scheduling has
Slide 30: SleepSync Digital Health Platform Accelerates Growth
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL • Electronic medical records (Future) • Seep coaching, telemedicine, and efficient home sleep apnea testing © Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL SleepSync™ Digital Health Platform Accelerates
Slide 31: Market Development
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Market Development 31
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
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
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
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
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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