Loading...
Docoh

Inspire Medical Systems (INSP)

Inspire is a medical technology company focused on the development and commercialization of innovative and minimally invasive solutions for patients with obstructive sleep apnea. Inspire's proprietary Inspire therapy is the first and only FDA-approved neurostimulation technology that provides a safe and effective treatment for moderate to severe obstructive sleep apnea.

INSP stock data

Analyst ratings and price targets

Last 3 months
Current price
Average target
$267.50
Low target
$250.00
High target
$285.00
Piper Sandler
Maintains
Overweight
$285.00
3 Aug 22
Truist Securities
Maintains
Buy
$250.00
10 Jun 22

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

2 Aug 22
15 Aug 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 186.57M 186.57M 186.57M 186.57M 186.57M 186.57M
Cash burn (monthly) 5.57M (no burn) 4.78M 3.64M 1.98M 1.53M
Cash used (since last report) 8.48M n/a 7.28M 5.54M 3.02M 2.32M
Cash remaining 178.09M n/a 179.29M 181.03M 183.55M 184.25M
Runway (months of cash) 32.0 n/a 37.5 49.8 92.5 120.8

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
28 Jul 22 Charisse Y Sparks Employee Stock Option Common Stock Grant Acquire A No No 208.5 1,823 380.1K 1,823
28 Jul 22 Cynthia Burks Employee Stock Option Common Stock Grant Acquire A No No 208.5 1,823 380.1K 1,823
11 Jul 22 Shelley G. Broader Common Stock Grant Acquire A No No 193.86 67 12.99K 400
53.9% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 296 290 +2.1%
Opened positions 44 55 -20.0%
Closed positions 38 16 +137.5%
Increased positions 100 89 +12.4%
Reduced positions 98 94 +4.3%
13F shares Current Prev Q Change
Total value 6.87B 5.95B +15.5%
Total shares 26.79M 25.85M +3.6%
Total puts 327.5K 201.8K +62.3%
Total calls 342.4K 243.9K +40.4%
Total put/call ratio 1.0 0.8 +15.6%
Largest owners Shares Value Change
Vanguard 2.6M $667.87M +1.6%
FMR 2.09M $536.81M +35.9%
BLK Blackrock 1.84M $473.31M -0.1%
MCQEF Macquarie 1.53M $391.83M +14.8%
BEN Franklin Resources 1.12M $288.25M +3.7%
Fred Alger Management 935.51K $240.14M -8.3%
IVZ Invesco 885.31K $227.25M +9.8%
William Blair Investment Management 754.09K $193.57M -14.7%
Champlain Investment Partners 702.66K $180.37M +4.4%
Gilder Gagnon Howe & Co 653.15K $167.66M -17.1%
Largest transactions Shares Bought/sold Change
FMR 2.09M +552.81K +35.9%
Viking Global Investors 310.88K +310.88K NEW
AMP Ameriprise Financial 456.32K +296.11K +184.8%
Farallon Capital Management 283.5K +283.5K NEW
CS Credit Suisse 416.94K -266.07K -39.0%
Marshall Wace 104.8K -250.76K -70.5%
Norges Bank 0 -212.34K EXIT
Citadel Advisors 73.46K -197.23K -72.9%
MCQEF Macquarie 1.53M +196.95K +14.8%
Westfield Capital Management 193.03K +193.03K NEW

Financial report summary

?
Competition
LivaNovaNyxoah
Risks
  • We have incurred significant operating losses since inception, we expect to incur operating losses in the future and we may not be able to achieve or sustain profitability. We have limited history operating as a commercial company.
  • Our revenue is primarily generated from sales of our Inspire system and we are, therefore, highly dependent on it for our success.
  • If patients or physicians are not willing to change current practices to adopt our Inspire therapy to treat moderate to severe OSA, our Inspire therapy may fail to gain increased market acceptance, and our business will be adversely affected.
  • If we are unable to achieve and maintain adequate levels of coverage or reimbursement for our Inspire system, or any future products we may seek to commercialize, our commercial success may be severely hindered.
  • Third-party payors who do not cover, or physicians who do not use, our Inspire system may require additional clinical data prior to adopting or maintaining coverage of our Inspire system.
  • The training required for physicians to use our Inspire system could reduce the market acceptance of our products.
  • We currently compete and will in the future continue to compete against other companies, some of which have longer operating histories, more established products or greater resources than we do, which may prevent us from achieving increased market penetration and improved operating results.
  • Our business, financial condition, results of operations and growth could be significantly harmed by the effects of the COVID-19 pandemic.
  • Our long-term growth depends on our ability to enhance our Inspire system, expand our indications, and develop and commercialize additional products.
  • Our financial results may fluctuate significantly and may not fully reflect the underlying performance of our business.
  • Our results of operations could be materially harmed if we are unable to accurately forecast customer demand for our Inspire system and manage our inventory.
  • We rely on a limited number of third-party suppliers and contract manufacturers for the manufacture and assembly of our products, and a loss or degradation in performance of these suppliers and contract manufacturers could have a material adverse effect on our business, financial condition, and results of operations.
  • Performance issues, service interruptions or price increases by our shipping carriers could adversely affect our business and harm our reputation and ability to provide our services on a timely basis.
  • Consolidation in the healthcare industry or group purchasing organizations could lead to demands for price concessions, which may affect our ability to sell our products at prices necessary to support our current business strategies.
  • We have limited experience marketing and selling our Inspire system, and if we are unable to expand, manage and maintain our direct sales and marketing organization we may not be able to generate revenue growth.
  • To successfully market and sell our Inspire system in markets outside of the U.S., we must address many international business risks with which we have limited experience.
  • We primarily rely on our own direct sales force for our Inspire system, which may result in higher fixed costs than our competitors and may slow our ability to reduce costs in the face of a sudden decline in demand for our products.
  • We may be unable to manage our growth effectively.
  • Our ability to maintain our competitive position depends on our ability to attract and retain senior management and other highly qualified personnel.
  • We face the risk of product liability claims that could be expensive, divert management’s attention and harm our reputation and business. We may not be able to maintain adequate product liability insurance.
  • If the quality of our Inspire system does not meet the expectations of physicians or patients, then our brand and reputation or our business could be adversely affected.
  • If we choose to acquire new and complementary businesses, products or technologies, we may be unable to complete these acquisitions or to successfully integrate them in a cost-effective and non-disruptive manner.
  • Unfavorable global economic conditions could adversely affect our business, financial condition or results of operations.
  • Failure of a key information technology system, process or site could have an adverse effect on our business.
  • If our facilities are damaged or become inoperable, we may be unable to continue to research, develop, and supply our Inspire system and, as a result, there could be an adverse effect on our business until we are able to secure a new facility and rebuild our inventory.
  • We rely on third-party distributors to effectively distribute our products in certain markets.
  • We are subject to anti-bribery, anti-corruption, and anti-money laundering laws, including the U.S. Foreign Corrupt Practices Act, as well as export control laws, customs laws, sanctions laws and other laws governing our operations. If we fail to comply with these laws, we could be subject to civil or criminal penalties, other remedial measures and legal expenses, which could adversely affect our business, results of operations and financial condition.
  • Our indebtedness may limit our flexibility in operating our business and adversely affect our financial health and competitive position.
  • We bear the risk of warranty claims on our Inspire system.
  • We may need substantial additional funding beyond our existing cash resources and may be unable to raise capital when needed, which could force us to delay or reduce our commercialization efforts or product development programs.
  • If we were deemed to be an investment company under the Investment Company Act of 1940, as amended (the “1940 Act”), applicable restrictions could make it impractical for us to continue our business as contemplated and could have a material adverse effect on our business, financial condition and results of operations.
  • The increasing focus on environmental sustainability and social initiatives could increase our costs, harm our reputation and adversely impact our financial results.
  • Our products and operations are subject to extensive government regulation and oversight both in the U.S. and abroad, and our failure to comply with applicable requirements could harm our business.
  • We may not receive the necessary approvals or certifications for our future products or expanded indications, and failure to timely obtain necessary approvals or certifications for our future products or expanded indications would adversely affect our ability to grow our business.
  • Modifications to our products may require us to obtain new PMAs or approvals of a PMA supplement, and if we market modified products without obtaining necessary approvals, we may be required to cease marketing or recall the modified products until required approvals are obtained.
  • Failure to comply with post-marketing regulatory requirements could subject us to enforcement actions, including substantial penalties, and might require us to recall or withdraw a product from the market.
  • Our products must be manufactured in accordance with foreign, federal and state regulations, and we or any of our suppliers or third-party manufacturers could be forced to recall our installed systems or terminate production if we fail to comply with these regulations.
  • If treatment guidelines for OSA change or the standard of care evolves, we may need to redesign and seek new marketing authorization from the FDA for one or more of our products.
  • The misuse or off-label use of our Inspire system may harm our reputation in the marketplace, result in injuries that lead to product liability suits or result in costly investigations, fines or sanctions by regulatory bodies if we are deemed to have engaged in the promotion of these uses, any of which could be costly to our business.
  • Our products may cause or contribute to adverse medical events or be subject to failures or malfunctions that we are required to report to the FDA and foreign regulatory authorities, and if we fail to do so, we would be subject to sanctions that could harm our reputation, business, financial condition and results of operations. The discovery of serious safety issues with our products, or a recall of our products either voluntarily or at the direction of the FDA or another governmental authority, could have a negative impact on us.
  • If we do not obtain and maintain international regulatory registrations, approvals or certifications for our products, we will be unable to market and sell our products outside of the U.S.
  • Legislative or regulatory reforms in the U.S. or the EU may make it more difficult and costly for us to obtain regulatory clearances, approvals or certification for our products or to manufacture, market or distribute our products after clearance, approval or certification is obtained.
  • We are subject to certain federal, state and foreign fraud and abuse laws, health information privacy and security laws and transparency laws, which, if violated, could subject us to substantial penalties. Additionally, any challenge to or investigation into our practices under these laws could cause adverse publicity and be costly to respond to, and thus could harm our business.
  • We are subject to U.S. federal, state, and foreign laws and regulations imposing obligations on how we collect, store and process personal information. Our actual or perceived failure to comply with such obligations could harm our business. Ensuring compliance with such laws could also impair our efforts to maintain and expand our customer base, and thereby decrease our revenue.
  • Healthcare policy changes, including recently enacted legislation reforming the U.S. healthcare system, could harm our business, financial condition and results of operations.
  • Our business involves the use of hazardous materials and our third-party manufacturers must comply with environmental laws and regulations, which may be expensive and restrict how we do business.
  • The clinical trial process required to obtain regulatory approvals is lengthy and expensive with uncertain outcomes. If clinical studies of our future products do not produce results necessary to support regulatory clearance or approval in the U.S. or foreign approval or certification, with respect to our current or future products, elsewhere, we will be unable to expand the indications for or commercialize these products and may incur additional costs or experience delays in completing, or ultimately be unable to complete, the commercialization of those products.
  • Disruptions at the FDA, other government agencies or notified bodies caused by funding shortages or global health concerns could hinder their ability to hire and retain key leadership and other personnel, or otherwise prevent new products and services from being developed or commercialized in a timely manner, which could negatively impact our business.
  • If we are unable to adequately protect our intellectual property rights, or if we are accused of infringing on the intellectual property rights of others, our competitive position could be harmed or we could be required to incur significant expenses to enforce or defend our rights.
  • Litigation or other proceedings or third-party claims of intellectual property infringement could require us to spend significant time and money and could prevent us from selling our products or affect our stock price.
  • If we are unable to protect the confidentiality of our trade secrets, our business and competitive position could be harmed.
  • We may be unable to enforce our intellectual property rights throughout the world.
  • Third parties may assert ownership or commercial rights to inventions we develop.
  • Third parties may assert that our employees or consultants have wrongfully used or disclosed confidential information or misappropriated trade secrets.
  • Recent changes in U.S. patent laws may limit our ability to obtain, defend and/or enforce our patents.
  • The market price of our common stock may be volatile and fluctuate substantially, which could result in substantial losses for purchasers of our common stock
  • Provisions in our governing documents and under Delaware law could make an acquisition of us more difficult and may prevent attempts by our stockholders to replace or remove our current management.
  • Our amended and restated certificate of incorporation provides that the Court of Chancery of the State of Delaware will be the exclusive forum for substantially all disputes between us and our stockholders, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees.
  • Because we do not anticipate paying any cash dividends on our capital stock in the foreseeable future, capital appreciation, if any, will be your sole source of gain.
  • Our disclosure controls and procedures may not prevent or detect all errors or acts of fraud.
  • Securities analysts may not publish favorable research or reports about our business or may publish no information at all, which could cause our stock price or trading volume to decline.
Management Discussion
  • Revenue increased $38.4 million, or 72.6%, to $91.4 million for the three months ended June 30, 2022 compared to $53.0 million for the three months ended June 30, 2021. These results reflect an increase in sales of our Inspire system of $38.5 million in the U.S. and a decrease of $0.1 million outside of the U.S. Revenue growth was primarily due to increased market penetration in existing territories, expansion into new territories, and increased physician and patient awareness of our Inspire system.
  • Revenue generated in the U.S. was $87.9 million for the three months ended June 30, 2022, an increase of $38.5 million, or 78.1%, compared to the three months ended June 30, 2021. Revenue growth in the U.S. was primarily due to increased market penetration in existing territories, expansion into new territories, increased physician and patient awareness of our Inspire system, and to a lesser extent, a list price increase that began to impact some U.S. customers in May 2022. The list price increase will be phased in to all U.S. customers over the remainder of 2022 and into the beginning of 2023.
  • Revenue generated outside of the U.S. was $3.5 million in the three months ended June 30, 2022, a decrease of $0.1 million, or 2.7%, compared to the three months ended June 30, 2021. The decrease in revenue was primarily due to unfavorable exchange rates, which was somewhat offset by increased market penetration in existing territories, the expansion of our European sales representatives into new territories, increased physician and patient awareness of our Inspire system, and sales to our new Singapore distributor.

Content analysis

?
Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. sophomore Avg
New words: comprised, extremity, head, imaging, intercompany, internationally, labeling, magnetic, MRI, neck, phased, reclassified, resonance, scan, silicone
Removed: acquire, afford, aiding, alter, amend, assuring, attracting, automatically, calendar, capable, classification, commencing, digital, discontinue, duration, entered, independent, initially, IPO, opportunity, preceding, promote, retaining, smaller, supplemented, suspend, terminated, termination, Topic, utilizing