Inspire Medical Systems, Inc. (NYSE:INSP) Q1 2023 Earnings Call Transcript

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Tim Herbert: Thanks Danielle. I think that we’ve been pretty good with the sleep studies and with the line of sight that we have for patients in the process. We’re able to schedule them in advance, and so we’re able to work around the staffing issues quite well, and therefore we’re able to achieve that 84% growth in the corridor, which is tremendous. And the number of patients that we’re able to help is really extraordinary. So I think the staffing issues is present for sure, but I think because we have some advanced planning with line of sight of our patients, we’re kind of able to manage that with our centers and I do think our limiting factor tends to be more of the E&T surge time in the operating room to do procedures. And if we could continue to improve surgeon capacity; that really is the limiting factor that could have made our quarter even greater if we had — if we had more surgeon time.

So when we look at staffing, I think we kind of focus more on the surgeon themselves who are doing the procedure, but the support staff is obviously very necessary, but with our advanced plan, we can work through that.

Operator: And I show our next question comes from the line of Larry Biegelsen from Wells Fargo. Please go ahead.

Larry Biegelsen: Good afternoon. Thanks for taking the question and I’ll echo my congratulations on another strong quarter. Sir, I’ll ask both upfront. Rick, just the usual question on just how to think about revenue cadence for the rest of the year and then Tim, I’d just love to get your reaction on the preliminary nickel data we saw and at a high level, Tim, just to follow on Robbie’s question, how you’re about preparing for competition eventually in the market. Thanks for taking the questions.

Rick Buchholz: Yeah. Hey Larry, this is Rick. So yeah, we’re really excited and proud of the results achieved by the team in the first quarter, and we did increase our guidance from our initial guidance beginning of the year. We’re excited about the opportunity. We haven’t changed our guidance strategy and we’re gonna continue to focus on increasing utilization at existing centers where we see that as well as add additional centers and so if, if you take the increase in guidance, it’s going to be really rateable throughout the entire year.

Tim Herbert: Okay. Good. Larry? As far as releasing of early data, I think anybody who’s been in med tech knows that early release of a Phase 3 pivotal study is pretty unorthodox and that’s not sure what the purpose was by doing that, but it’s a very limited release and it’s very hard to make any judgements from the data that was released. And maybe it’s because there isn’t a lot of other data available, and so it’s all they have to be able to put that out. It doesn’t matter until the final numbers are available a year from now and what the FDA says when they assess those, those that data. So that’s all we’re going to really comment on that. As far as competition, we know we’re going to have competition in the future. What we’ve been able to do to show the benefits for patients in this market is tremendous.

The market is extremely large and it’s open to having viable and good competition that has therapies that can help patients and I think that on the horizon that will happen. But in the meantime Larry, we’re developing our technology to improve physician and patient experience. Inspire 5 is a perfect example of a therapy that’s going to be leading edge, one of the best, if not the best neurostimulator in the world today, to be able to take care of patients, reduce or time improve reliability by eliminating the sensor, improving outcomes and then tying that into our patient outcomes with the SleepSync system. I think we’re going to be in very strong position for several years probably until the time we’d even expect to see any competition if they pass their trials anyways.

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