Inspire Medical gains on GLP-1 prospects

Inspire Medical Systems (NYSE:INSP) traded higher on Wednesday after MedTech’s CEO argued that the GLP-1 class of weight loss drugs could benefit its sleep apnea therapy business.

“We are excited about GLP-1s. And what GLP-1s can do to our business is significant,” CEO Tim Herbert said at the Morgan Stanley Healthcare Conference on Wednesday.

Unlike its larger peers, ResMed (RMD) and Philips (PHG), Inspire (INSP) markets a minimally invasive medical implant to treat obstructive sleep apnea.

The trio came under pressure in June after Eli Lilly (LLY), which dominates the obesity drug market with rival Novo Nordisk (NVO), said its GLP-1 tirzepatide met the main goals in a Phase 3 program for adults with obesity and OSA.

“We have so many patients that just cannot qualify for Inspire therapy because they have a high BMI,” Herbert explained. “We are working with physicians to make sure they understand the benefits of the GLP-1s, what that can do to help their patients lose weight and thereby qualify for Inspire.”