Inspire Medical files for $75M IPO to step up sleep apnea device sales drive

Part of Inspire Medical's sleep apnea system. (Inspire Medical)

Inspire Medical has filed to raise $75 million through a Nasdaq IPO. The sleep apnea specialist wants the cash to step up commercialization of its FDA-approved neurostimulation device.

Maple Grove, Minnesota-based Inspire won FDA approval for the device in 2014—three years after it came to market in Europe—and more than 2,800 patients have received the therapy. However, the device and Inspire are still finding their feet commercially. Inspire generated sales of $28.6 million last year, up 74% year on year, but that translated into a net loss of $17.5 million.

Inspire expects to continue running at a loss for the foreseeable future but is hoping investors will look beyond that and fund its plans to grow the business. If successful, the IPO will equip Inspire to spend $45 million on hiring sales and marketing staff and expanding promotional campaigns on both sides of the Atlantic.

FREE DAILY NEWSLETTER

Like this story? Subscribe to FierceBiotech!

Biopharma is a fast-growing world where big ideas come along every day. Our subscribers rely on FierceBiotech as their must-read source for the latest news, analysis and data in the world of biotech and pharma R&D. Sign up today to get biotech news and updates delivered to your inbox and read on the go.

The company’s marketing efforts to date have focused on persuading ENT and sleep physicians to consider the device as an option for patients with moderate-to-severe obstructive sleep apnea (OSA) who have tried continuous positive airway pressure (CPAP) without success.  

CPAP is a well established treatment for OSA but the need to wear a face or nasal mask deters some people from sticking with the therapy, leading to noncompliance and poor health outcomes. Inspire’s device consists of a neurostimulator and supporting technologies that monitor a patient’s breathing and deliver electrical stimulation to keep the airway open. 

The device reduced the number of complete and partial airway blockages in a clinical trial, suggesting it can help patients with OSA. But Inspire is yet to win over payers, most of which class the device as experimental or investigational. Inspire is trying to improve the situation by encouraging the creation of national coverage policies that support reimbursement of its device. 

Suggested Articles

Janssen is planning its first completely virtual clinical trial, using personal smartphones and wearable devices with no in-person site visits.

Sensyne Health aims to bring its AI tools to America, and it’s enlisting IT giant Cognizant and data infrastructure specialist Agorai to help.

Daré Bioscience added a microchip-based implant to its pipeline and reported data from a pre-pivotal study of a hormone-free contraceptive ring.