What happened to Inspire Medical Systems' stock?

Inspire Medical Systems' stock lost more than 40% of its value in the past five days as investors realized the competitive threat posed by new weight loss drugs.

How are the new weight loss drugs affecting Inspire Medical Systems?

According to Inspire's CEO Timothy Herbert, patients may be delaying the use of the company's pacemaker-like sleep apnea device to first try the GLP-1 weight loss drugs, such as Eli Lilly's Zepbound.

What is the significance of the FDA's approval of Zepbound?

The FDA approved Eli Lilly's weight loss drug Zepbound in December 2024 to treat moderate-to-severe obstructive sleep apnea in adults with obesity. The regulator stated that the drug has demonstrated a statistically significant and clinically meaningful reduction in apnea and hypopnea events.

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Sleep Apnea Device Maker Loses 40% Value as Weight Loss Drugs Pose Threat

6 Aug

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Summary

Inspire Medical Systems' stock plunged over 40% in the past week
Patients may be delaying use of the company's sleep apnea device to try new weight loss drugs
FDA approved Eli Lilly's weight loss drug Zepbound to treat sleep apnea in obese adults

Sleep Apnea Device Maker Loses 40% Value as Weight Loss Drugs Pose Threat

In a significant development, Inspire Medical Systems, a prominent player in the Minnesota medtech scene, has experienced a steep 40% drop in its stock value over the past five days. This abrupt turn of events has been driven by investors' realization of the competitive threat posed by a new class of weight loss drugs, particularly the FDA-approved Zepbound from Eli Lilly.

According to Inspire's CEO Timothy Herbert, patients may be opting to first try the GLP-1 weight loss drugs, such as Zepbound, before considering the company's pacemaker-like sleep apnea device. Sleep apnea is a condition where a person's breathing stops and starts during sleep, increasing the risk of serious health problems, and obesity is a significant risk factor.

The FDA's approval of Zepbound in December 2024 to treat moderate-to-severe obstructive sleep apnea in adults with obesity has emerged as a game-changer. The regulator stated that the drug, which activates hormone receptors to reduce appetite, has demonstrated a statistically significant and clinically meaningful reduction in apnea and hypopnea events.

This development has created a challenging landscape for Inspire Medical Systems, which has seen its share price grow more than 200% since going public in 2018. The company's stock plunge is a stark contrast to its previous success, and it remains to be seen how the firm will navigate this new competitive environment.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.