Inspire Medical Systems, Inc. · NYSE:INSP

Inspire Medical Systems — Investor Presentation (February 2023)

37 slides from Inspire Medical Systems's investor presentation, Feb 7, 2023

Slide 1: Inspire Medical Systems, Inc. February 2023
Inspire Medical Systems, Inc. February 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: 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
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
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: 2022 New Product Deliveries
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL 2022 New Product Deliveries SleepSync™ Patient Management System • Remote to app to cloud connectivity • Enables patient management remotely & by exception • Leveraged existing Inspire cloud & remote infrastructure Silicone Lea
Slide 11: 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 11
Slide 12: 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 - 4,000+ enrollments at 62 medical centers with enrol
Slide 13: 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 14: 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
Slide 15: 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 16: 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 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Q422 ____________________ Quarterly amounts are unaudited Qua
Slide 17: 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
Slide 18: 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 0 100 200 300 400 500 600 700 800 900 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 Q
Slide 19: 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 20: Q4 Business Highlights
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Q4 Business Highlights (As of December 31, 2022) • Generated $137.9 million of revenue in the fourth quarter • A 76% increase over the same quarter last year • Generated full year revenue of $407.9 million, a 75% increase over
Slide 21: 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
Slide 22: 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
Slide 25: Consolidated Statements of Operations & Comprehensive Income (Loss)
© Inspire Medical Systems, Inc. All Rights Reserved INSPIRE CONFIDENTIAL Consolidated Statements of Operations & Comprehensive Income (Loss) (Unaudited)(In thousands, except share and per share amounts) 25
Slide 27: 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
Slide 29: 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
Slide 30: 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
Slide 31: 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
Slide 33: 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 33
Slide 34: 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 35: 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 36: 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 37: 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

Inspire Medical Systems — Investor Presentation (February 2023) on 6ix

Inspire Medical Systems — Investor Presentation (February 2023)

Slide 1: Inspire Medical Systems, Inc. February 2023

Slide 2: Disclaimer

Slide 3: Company Overview

Slide 4: Obstructive Sleep Apnea is a Serious and Chronic Disease

Slide 5: Current Treatment Options, Such as CPAP and Invasive Surgery, Have Significant Limitations

Slide 6: A Strong Market Opportunity Exists for an Alternative to CPAP

Slide 7: UAS is Safer than Traditional Sleep Surgery

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

Slide 9: Inspire Therapy is a Proven Solution for Patients with OSA

Slide 10: 2022 New Product Deliveries

Slide 11: Unified Patient Management Platform

Slide 12: Continuous Data Collection and Outcomes Monitoring

Slide 13: Inspire Patient Experience Report - Safety

Slide 14: Inspire focus is to maintain strong Patient Outcomes

Slide 15: Keeping Control While Growing Fast

Slide 16: Quarterly Revenue

Slide 17: Annual Revenue and Gross Margin

Slide 18: Steady Cadence of New Center Adds

Slide 19: DTC Program: Strategic Pillars

Slide 20: Q4 Business Highlights

Slide 21: Upcoming Catalysts

Slide 22: Our Growth Strategy

Slide 23: INSPIRE ™

Slide 24: Appendix

Slide 25: Consolidated Statements of Operations & Comprehensive Income (Loss)

Slide 26: Condensed Consolidated Balance Sheets

Slide 27: Strong Management Team

Slide 28: Product Development and Digital Health

Slide 29: Advisor Care Program (ACP)

Slide 30: Digital Scheduling through ACP

Slide 31: Ognomy Pilot through ACP

Slide 32: Market Development

Slide 33: Commercial Organization

Slide 34: Sales Area Structure

Slide 35: Health Economics: Untreated OSA Cost Burden

Slide 36: Environmental, Social and Governance (ESG)

Slide 37: Our Intellectual Property Portfolio