Inspire Medical Systems, Inc. (NYSE:INSP) Q4 2022 Earnings Call Transcript

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Tim Herbert: Absolutely. So we finished the first 300 in ’22. At the same time, Dr. Weiner is a physician in Arizona give him a shout out, because his paper was published several weeks ago with the first100 patients. And we’re getting into data now from the first 300. Right now, it’s in the quality stage, meaning that we get physician overreach of the data for quality control. So, we’re right in that process, but we also noted there were patients with a higher BMI above 32. So we actually are entertaining the opportunity to continue that study and actually increase to maybe add another 300 patients go to 600 being able to widen the number of patients that we can treat with that. So very active program, we’re in the process of getting into quality control on the first 300.

And we’re looking to just continue enrolling patients, because the data is we’d like what we see and we think that we might be able to treat even a higher BMI population. So you’ll expect to expect us to say no, we’re going to 600 patients in.

Operator: Thank you. Our next question comes from Suraj Kalia with Oppenheimer. You may proceed.

Suraj Kalia: So, Tim, forgive me, maybe I missed the new store, same store metrics provided. If I could ask specifically the 225 or so sites added last year? How many implants did they do for the full year?

Tim Herbert: We don’t have that specific numbers in front of those, but remember how we do new sites. And a new site is anybody who has opened up during the year. So any site that we opened in the fourth quarter, obviously they were only able to do their first cases. So, they do one or two cases in November, December. Anybody who opened up January 1 of 2022 is still in the same bucket of a new center. And they have the opportunity to reorder right and do additional patients to the year. So, some of those can be productive accounts by the time they get to the end of 2022. So, it’s kind of the way that we established case centers, and we established them per year. So, yes, I don’t really have the exact number of what percent of the cases were from the class of 2022.

Suraj Kalia: How do you define account turnover?

Tim Herbert: First, let’s define account and account is a purchasing unit, right. That would be a hospital that borders product from us. That’s what we call a center. A center can have several different accounts per se. So, there may be catch up back down to who’s on the website, right. We don’t have one center on a website. We could have multiple centers on there, right. The sleep practices could be on the website along with the planning surgeon website. So turnover, we don’t have a whole lot of center turnover, those are purchasing units. But sometimes, they’ll go on hold if the surgeon moves, but go ahead.

Suraj Kalia: I guess Tim, what I was really getting at just trying to get my arms around. You’ll have 905 sites exiting FY ’22. Great, but does 905 really imply that onboarding was, I don’t know, pick a number, 1100, and then some bled out for the various reasons that you have mentioned on calls in the past, they didn’t do implants. You’ll kick them out the list and all that, and then you’ll exit it at 905. So just kind of trying to understand what the turnover is? How many don’t come so to speak?

Tim Herbert: Very low, very, very low, and I don’t think in the fourth quarter we really closed any sites. So what you see is additive and 905 is the active number of centers. And during COVID, we reported, I think once we closed 15 sites and every time we closed like 12. By the way, some of those sites have a surgeon move back in our back-end process. So, we have very, very low turnover of a site once they become active, now we want to continue to work with that site to be able to increase utilization. Doesn’t mean a site if they’re not productive or if they have too much of a backlog of patients that they’re scheduling out too late, we’ll remove them from the website. But the website and an active center are two independent functions.

Operator: Thank you. This concludes the Q&A session for the conference. I’d now like to turn the call back to Tim for any closing remarks.

Tim Herbert: Thank you, Josh, and thanks for all for joining the call today. As always, I’m grateful to the growing team of dedicated Inspire employees for their enthusiasm, hard work, and continued motivation to achieve successful and consistent patient outcomes. The Inspire team’s commitment to patient remains unmatched and is the most important element to our success. I wish to thank all of our employees as well as the healthcare teams for their continued efforts, as we remain focused on further expanding our business in the U.S., Europe, and in Asia. All of you on the call, we appreciate your continued interest and supportive Inspire and look forward to providing you with further updates in the month ahead. Please stay safe and healthy.

Operator: Thank you. This concludes today’s conference call. You may now disconnect.

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