MINNEAPOLIS - Inspire Medical Systems, Inc. (NYSE: NYSE:INSP), a company specializing in innovative treatments for obstructive sleep apnea (OSA), has announced that its Inspire therapy will now be reimbursed in France. This development, effective today, marks a significant milestone for the company as it expands its reach within the European market.
Inspire therapy, which is the first and only FDA-approved neurostimulation technology for moderate to severe OSA, has been available in Europe since receiving the European Conformity Marking in 2010. However, the company's strategy has been to secure reimbursement in individual countries before fully launching commercial efforts.
With France being the second-largest OSA market in Europe, this reimbursement parity aligns with that of other European and global markets and is expected to enhance Inspire's market presence.
Tim Herbert, Chairman and CEO of Inspire, expressed enthusiasm about the move, highlighting the strong evidence supporting the therapy's safety and efficacy. Andreas Henke, Executive Vice President, Managing Director Europe, also commented on the positive implications for sleep physicians in France, who now have a new option to offer patients suffering from untreated OSA.
The approval for reimbursement by the French Social Security is a crucial step for Inspire, as it allows the company to provide its therapy to a broader patient base and potentially improve the quality of life for those affected by OSA.
Inspire Medical Systems has established reimbursement for its therapy in several key European countries, and the inclusion of France is anticipated to further the company's commercialization ambitions.
This press release includes forward-looking statements, which involve risks and uncertainties. The company cautions that actual results could differ materially from those anticipated and that they will not update forward-looking statements with new information or future events.
The information in this article is based on a press release statement from Inspire Medical Systems, Inc.
In other recent news, Inspire Medical Systems has been the focus of several significant developments. The company announced the resignation of its Chief Operating Officer, Philip J. Ebeling, who will assume the role of President and CEO at a private cardiology-focused medical device company. In response, Inspire Medical Systems plans to engage a top executive search firm to find a suitable replacement.
Furthermore, Inspire Medical Systems has gained EU approval for its updated sleep apnea therapy, a significant achievement under the European Union's Medical Device Regulation. This approval allows patients in the EU to undergo full-body MRI scans and introduces silicone-insulated leads to the therapy.
Several analyst firms have adjusted their stock targets for the company. Truist Securities reduced its price target to $217, maintaining a Buy rating. Baird revised the company's price target to $220, maintaining an Outperform rating, and Mizuho Securities reduced its price target to $200 while keeping an Outperform rating.
BofA Securities cut its price target from $225 to $185 due to projected deceleration in revenue growth, maintaining a Neutral rating. Lastly, Oppenheimer maintained its Perform rating on Inspire Medical Systems.
InvestingPro Insights
In light of Inspire Medical Systems, Inc.'s (NYSE: INSP) recent announcement regarding the reimbursement of its Inspire therapy in France, investors may find the company's financial health and market performance to be of particular interest. According to InvestingPro data, Inspire Medical Systems currently holds a market capitalization of $4.24 billion.
Despite a challenging market environment, the company has shown robust revenue growth over the last twelve months as of Q1 2024, with an impressive increase of 41.71%. This growth is further reflected in the quarterly figures, where revenue growth reached 28.24% in Q1 2024.
While Inspire's growth metrics are promising, it's worth noting that the company has not been profitable over the last twelve months, as indicated by a negative P/E ratio of -267.2. However, with a gross profit margin of 84.65%, the company maintains a strong foundation for potential future profitability. Moreover, one of the InvestingPro Tips suggests that analysts predict the company will be profitable this year, which could signify a pivotal turn for Inspire Medical Systems.
Investors should also be aware that Inspire's stock has experienced a significant price drop over the last three months, with a 38.98% decline. Nevertheless, the company's strategic expansion into the French market and the anticipated increase in its patient base may contribute to a more favorable outlook.
For those interested in a deeper dive, InvestingPro offers more insights, including additional InvestingPro Tips on the company's financials and market performance. Currently, there are 9 additional InvestingPro Tips available at https://www.investing.com/pro/INSP for investors seeking comprehensive analysis.
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