Inspire Medical Systems Inc at UBS Global Healthcare Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Graham Doyle - UBS Investment Bank, Research Division - Analyst : If you start commercially, when we think the patients are going for first, presuming you've got a target market, you've got what's going on with Philips separately, but are you targeting patients who have tried CPAP and are thinking like, "This just isn't -- it's not working right. I don't want it." Or are you targeting newly diagnosed patients?

Question: Graham Doyle - UBS Investment Bank, Research Division - Analyst : And is that -- do you think that's a sort of a benefit that you guys have in that? At the moment -- well, I suppose, for the last 5, 6 years, you really struggled to get patients diagnosed because you've got to do the sleep therapy -- sleep diagnostic. And that's becoming easier over time because we're going to virtual and digital, which presumably by the time you tap into that market means the market is much and much larger?

Question: Graham Doyle - UBS Investment Bank, Research Division - Analyst : And when you think of these patients, what's their pathway? So have they -- they are having CPAP? How often are they seeing their sleep physician? And how often they -- like, how extreme? And do we not appreciate how difficult this particular inflection is, I suppose? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 25, 2022 / 5:15PM, INSP.N - Inspire Medical Systems Inc at UBS Global Healthcare Conference

Question: Graham Doyle - UBS Investment Bank, Research Division - Analyst : When the barrier come up to face when you try and convince physicians to move this direction. I know historically, we looked at the epilepsy space. There was actually a genuine confusion as to why the product worked. We knew it worked, but we just didn't know why.

Question: Graham Doyle - UBS Investment Bank, Research Division - Analyst : How easy is to convince people about the mechanism of action here?

Question: Graham Doyle - UBS Investment Bank, Research Division - Analyst : Maybe one for Rick, in terms of financials, how does the commercial model here work? So -- and is there a potential to have upgrades and sort of long-term benefits from the data that you can also commercialize?

Question: Graham Doyle - UBS Investment Bank, Research Division - Analyst : And when we think of the sort of the value of the patient to you. So it's a one-off procedure, and so you get that revenue. Is there anything you can do longer term to have a recurring component, given high valuable your devices to a patient for a very long period of time?

Question: Graham Doyle - UBS Investment Bank, Research Division - Analyst : And how should we think about the IP? Because obviously, this is a -- it's a market people really want to get into. And I certainly find some companies who have tried many, many times and failed. What is your IP position here? And what do you think the competitive landscape does over the next 5, 10 years? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 25, 2022 / 5:15PM, INSP.N - Inspire Medical Systems Inc at UBS Global Healthcare Conference

Question: Graham Doyle - UBS Investment Bank, Research Division - Analyst : It's slightly cheeky question, but 92% rate of people would do it again. What are the 8% saying?

Question: Graham Doyle - UBS Investment Bank, Research Division - Analyst : And DTC is obviously increasingly important in med devices as we go forward. Do you guys -- I mean if you think about customer acquisition costs, have you done much work on that? Have you got it down to a science as to what you need to do once you put out these advertisements? How do you narrow the funnel? How do convert patients?

Question: Graham Doyle - UBS Investment Bank, Research Division - Analyst : This is a highly symptomatic disease, right? And it's clearly an area where when we see in other places, if you invest heavy in sales and marketing, you can get a great return in terms of volumes. You've got really, really strong gross margins. So how do you balance the investment versus trying to show that EBITDA positivity going forward because you're ain't there first? It's a great opportunity right now.

Question: Graham Doyle - UBS Investment Bank, Research Division - Analyst : Well, surgeons don't really have another option in this particular segment. The logical option is a CPAP or it's a device. So I suppose, in a way, why wouldn't you just push price? Because it's profitable regardless. It's more profitable than getting...

Question: Graham Doyle - UBS Investment Bank, Research Division - Analyst : Well, may be to sort of finish up because when we think about the positives in terms of driving the business, you've obviously got that strong reimbursement dynamic, which helps in terms of attacking a big volume opportunity. And I suppose -- I mean a sort of indirect competitor in quite a tough spot? The 2 ends like -- and think of that you need to navigate this year are going to be labor in your end market, can you get the people in to perform the procedure? And then the situation around chips and electronic components, so if you maybe tackle those and sort of reassure us as to why...?

Question: Graham Doyle - UBS Investment Bank, Research Division - Analyst : Great. Well, thank you very much, both, and thank you for joining us.