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Inspire Therapy

A Treatment Option for Some Obstructive


Sleep Apnea Patients Who Are Unable to Use CPAP

800-129-001, Rev B Inspire Medical Systems, Inc.


Nov 2015 2015 All Rights Reserved
Obstructive Sleep Apnea (OSA)
Consequences and Treatments

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Some OSA Patients Cannot Achieve Benefit
From Traditional Therapies And Remain
Vulnerable
Airway Airway
Obstruction: Obstruction:
47 seconds 86 seconds

Airflow Over 30 obstructions


per hour (AHI)*

Oxygen Regular desaturations


Saturation below 90%
90%

Moderate to severe range: AHI 15-30


Severe range: AHI 30+
*Patient with severe OSA
84% 74%

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Untreated OSA Increases Risk for
Comorbidities and Accidents
Increased Risk
Stroke 1 3.8

Top 3
Death (severe OSA) 2 3.8
Hypertension 3 2.9
Motor Vehicle Accidents 4
2.4
Heart Failure 5 2.4
Occupational Accidents 6 2.2
Death (moderate OSA) 1 1.7
Odds Ratio
Type 2 Diabetes 7 1.6 Hazard Ratio

Depression 8 1.4 Relative Risk

Coronary Artery Disease 9 1.1

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0

1. Artz et al, Am J Respir Crit Care Med 2005


2. Young et al, Sleep 2008
3. Peppard et al, N Engl J Med 2000
4. Tregear et al, J Clin Sleep 2009
5. Shahar et al, Am J Respir Crit Care Med 2001
6. Lindberg et al, Am J Respir Crit Care Med 2001
7. Reichmuth et al. Am J Respir Crit Care Med 2005;
8. Smith et al, CHEST 2002
9. Gottlieb et al, S Circulation. 2010 Inspire Medical Systems, Inc.
2015 All Rights Reserved
OSA Treatment Shown to Reduce
Cardiovascular Events

Months

Adapted from Spanish Sleep Cohort (n=1,651, mean follow-up of 10 yrs; age ~ 50 yr)

Untreated severe OSA (AHI of 30+) is associated with an increased risk of both fatal and
non-fatal cardiovascular events
Consistent treatment with Continuous Positive Airway Pressure1 (CPAP) or an AHI <15
reduces risk 1 Consistent use - Average daily use more than 4

hours; Long-term cardiovascular outcomes in men


with obstructive sleep apnoea-hypopnoea w/ or w/o
treatment with CPAP: an observational study; Marin
et al., Lancet 2005

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Treating the OSA Patient

Traditional
Therapies
Lifestyle changes Treatment Goals
CPAP
Oral Appliance
OSA
Reduce
Protected Vulnerable symptoms
Patients Patients
Repetitive Obstructions and SaO2 Improve QOL
Desaturations
Minimize risk
-Cardiac
-Brain
-Accidents
Inspire Mission
Provide physicians an
additional treatment option to
protect some patients

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How it Works

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Airway Obstruction

Sites of Airway Obstruction

Nasal

Palate

Tongue Base

Epiglottis

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Airway Obstruction

Sites of Airway Obstruction

Nasal

Palate

Tongue Base

Epiglottis

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The Hypoglossal Nerve
(Cranial Nerve XII)

Controls muscles and


movements of the tongue
Motor nerve
Mechanical coupling with
palate is very common

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The Distal Hypoglossal Nerve

Styloglossus
Muscle

Hyoglossus
Muscle

Hypoglossal
Nerve (CN XII)
Genioglossus
Muscle

Geniohyoid
Mild stimulation Muscle

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Hypoglossal Nerve Stimulation Effect
No Stimulation Mild Stimulation

Base of Tongue Palate Base of Tongue Palate

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Stimulation Timed With Breathing

Respiratory Cycle
Timing

Stimulation
delivered during
inspiration

3. Computer
& Battery
1. Mild
stimulation 2. Sense
of HGN Breathing

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The Inspire Upper Airway Stimulation System

Stimulation
Cuff Breathing
Sensor

Generator

Several million patients receive implantable stimulation therapies annually


Cardiac conditions (Bradycardia, Tachycardia, Heart Failure)
Pain management
Other neuro-related conditions (Urologic disorders, Parkinsons Disease)

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Inspire Therapy:
Sleep Study Illustration
Airflow, breathing and normal oxygen levels restored
Inspire therapy turned on

Airflow

SpO2

Severe OSA Events OSA Events Resolved

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Active US Multi-Disciplinary
Inspire Therapy Programs
East South Midwest West
Beth Israel, New York Baptist Health South Florida Advanced Regional Surgical Center Alvarado Hospital
MedStar Georgetown Hospital Baylor Surgical Hospital Cincinnati VA Medical Center IMS/St. Joseph Dignity Health
Keck Hospital of University of Southern
MedStar Washington Hospital Center East Alabama Medical Center Cleveland Clinic
California
Middlesex Hospital Florida Hospital Essentia Health - St Marys, Duluth Mayo Clinic Scottsdale
New York Presbyterian Fairview Health System Osborne Head and Neck Surgery, Los
James A Haley VA Medical Center
Cornell-Weill University of Minnesota Angeles
Thomas Jefferson University Hospital Medical City, Dallas Froedtert & Medical College of Wisconsin Stanford Health Care
University of Pennsylvania Health System Medical University of South Carolina Henry Ford Hospital UCLA Medical Center
University of Colorado Ft. Collins/
University of Pittsburgh Medical Center Methodist Ambulatory Surgical Hospital Indiana University Medical Center
Poudre Valley
Iowa City Ambulatory Surgical Center
University of Virginia Medical Center Navicent Health System Macon, GA
(ENT Medical Services)
Virginia Hospital Center Northside Hospital, Atlanta NorthShore University Health System
Walter Reed Medical Center The Hospital at Westlake Norton Healthcare, Louisville
West Haven VA Hospital, CT University of Alabama Birmingham Ohio State University
University of Florida Medical Center OhioHealth - Riverside Methodist Hospital
Regions Hospital Health Partners
University of Mississippi Medical Center
Minneapolis
University of South Florida/
Rush University Medical Center
Tampa General Hospital
University of Texas Southwestern St. Cloud Hospital

Wellstar Health System, Atlanta St. Vincent Health System, Indianapolis

The Christ Hospital, Cincinnati


University Hospitals Health System
(Case Western)
University of Cincinnati Health

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Global Program Footprint

Germany Belgium
Clinic Rechts der Isar, Munich University Hospital, Antwerp
University of Mannheim, Mannheim
University Clinic of Schleswig Holstein, Lbeck
Neurology Clinic of University of Ulm, Gnzburg The Netherlands
Helios Klinikum Berlin-Buch, Berlin OLVG-West, Amsterdam
Sint Antonius Ziekenhuis, Nieuwegein

Switzerland France
Kantonsspital Baselland, Liestal CHU, Bordeaux
Kantonsspital St. Galen, St.Galen

Austria Finland
University Clinic of Innsbruck, Innsbruck HUCS, Helsinki

United States Norway


Haukeland University Hospital, Bergen

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The Inspire Patient Experience

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The Inspire Patient Experience

What is surgery and recovery like?

What does the therapy feel like?

What is it like living with Inspire therapy?

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The Inspire Patient Experience

What is surgery and recovery like?

What does the therapy feel like?

What is it like living with Inspire therapy?

Inspire Medical Systems, Inc.


2015 All Rights Reserved
The Inspire Upper Airway Stimulation System

Stimulation
Cuff Breathing
Sensor

Generator

Several million patients receive implantable stimulation therapies annually


Cardiac conditions (Bradycardia, Tachycardia, Heart Failure)
Pain management
Other neuro-related conditions (Urologic disorders, Parkinsons Disease)

Inspire Medical Systems, Inc.


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Incisions After Healing is Complete

Incision on neck Incision and device Incision on chest


for stimulation lead under collarbone for sensor lead

*Photos used with patient consent

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Inspire Therapy Procedure Overview

Typically an Outpatient Procedure


General anesthesia

Pain Management
Mild discomfort and swelling at the incision sites for a few
days after the procedure, usually managed with over-the-
counter pain medication

Recovery
Return to regular diet and most activities of daily living
immediately after the procedure
Avoid strenuous activities for a few weeks

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The Inspire Patient Experience

What is surgery and recovery like?

What does the therapy feel like?

What is it like living with Inspire therapy?

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What Does Inspire Therapy Feel Like?
Patients describe feeling a tingling
sensation or mild muscle contraction when
first activating Inspire therapy

Inspire therapy is adjustable for patient


comfort

Most patients acclimate well to Inspire


therapy within the first month of use

In the STAR Trial at 1 year:


86% of patients reported using Inspire therapy every night
93% of patients reported using Inspire therapy five or more night per week

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The Inspire Patient Experience

What is surgery and recovery like?

What does the therapy feel like?

What is it like living with Inspire therapy?

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Living with Inspire Therapy

With the sleep remote, patients can:


- Start therapy
- Stop therapy
- Pause therapy
- Increase or decrease energy

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Inspire Therapy Clinical Evidence
Publications and Safety
Adherence, Outcomes, Snoring
Awards and Recognition

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Inspire Therapy
Clinical Evidence Development
12 Peer-Reviewed Publications as of November 2015

INSPIRE 1, 2, 3 STAR PHASE III TRIAL


WITH RANDOMIZED CONTROLLED ONGOING STUDIES
FEASIBILITY STUDIES WITHDRAWAL STUDY

First Human Implant Safety/Efficacy European Post-Approval Study


Patient Selection FDA Approval US Post-Approval Study
Implant Technique Long-Term Follow-Up Single Center Experience Projects
Safety/Efficacy Cost Effectiveness European Randomized Controlled Study
4 Peer-Reviewed Publications 8 Peer-Reviewed Publications

Peer Reviewed Publications STAR Trial Outcomes


1 YEAR: Strollo et al. The New England Journal of Medicine. January 2014
RANDOMIZED STUDY: Woodson et al. Otolaryngology Head and Neck Surgery. September 2014
18 MONTHS: Strollo et al. SLEEP. June 2015
2 YEAR: Soose et al. Journal of Clinical Medicine. July 2015
3 YEAR: Woodson et al. Otolaryngology Head and Neck Surgery. November 2015

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STAR Trial Safety Summary
126 Patients

Serious adverse events/side effects within the first year


One elective device removal requested by patient
Two device repositionings to resolve patient
discomfort

Serious adverse events/side effects after the first year


Device removal due to insomnia and other
psychological issues (N=1)
Device removal due to septic arthritis of right
shoulder; no device-related infection found with
implanted pulse generator (IPG) pocket (N=1)

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Inspire Therapy
Long-Term Objective Outcomes: AHI
35
Apnea Hypopnea Index

29.3
30
25
20
15
9.0 9.7
10
6.2
5
0
Baseline 12 Month 18 Month 36 Month
N=126 N=124 N=121 N=98

12 Month Data: Strollo et al NEJM 2014 Results in median, p < 0.01


18 Month Data: Strollo et al SLEEP 2015
36 Month Data: Woodson et al OTO-HNS 2015

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Inspire Therapy
Long-Term Objectives Outcomes: ODI
30
25.4
25
Oxygen Desaturation

20

15

10 8.6
7.4
4.8
5
Index

0
Baseline 12 Month 18 Month 36 Month
N=126 N=124 N=121 N=98

12 Month Data: Strollo et al NEJM 2014 Results in median, p < 0.01


18 Month Data: Strollo et al SLEEP 2015
36 Month Data: Woodson et al OTO-HNS 2015

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Inspire Therapy
Long-Term Subjective Outcomes: FOSQ*
20 18.2 18.4 18.8
Normalized daytime functioning
Functional Outcomes

Sleep Questionnaire

16 14.6

12
of

0
Baseline 12 Month 18 Month 36 Month
N=126 N=123 N=123 N=110
*All 5 FOSQ subscale variables showed clinically significant improvements. FOSQ subscale variables include (1)
activity, (2) productivity, (3) social, (4) intimacy, and (5) vigilance.

12 Month Data: Strollo et al NEJM 2014 Results in median, p < 0.01


18 Month Data: Strollo et al SLEEP 2015
36 Month Data: Woodson et al OTO-HNS 2015
FOSQ: Soose et al JCSM 2015

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Inspire Therapy
Long-Term Subjective Outcomes: ESS
Epworth Sleepiness Scale

12
11.0

10
Normalized daytime functioning

6.0 6.0 6.0


6

4
Baseline 12 Month 18 Month 36 Month
N=126 N=123 N=123 N=110
Results in median, p < 0.01
12 Month Data: Strollo et al NEJM 2014
18 Month Data: Strollo et al SLEEP 2015
36 Month Data: Woodson et al OTO-HNS 2015

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Inspire Therapy Adherence
Patient Self-Reported

100% 93%
90% 86% 86% 87%
81% 81%
80%

70%

60%

50%

40%

30%

20%

10%

0%
12 Month 24 Month 36 Month
N = 124 N = 117 N = 108

Use every night (%) Use at least 5 nights a week (%)

From STAR database

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Partner Reported Snoring Outcomes
No or Soft Snoring Bed Partner Leaves
Room
100% 50%
86% 87%
80%
80% 40%

30%
60% 30%

40% 20%

17%
20% 10%
5% 4% 3%
0% 0%
Baseline 12 Month 18 Month 36 Month Baseline 12 Month 18 Month 36 Month
N=108 N=103 N=103 N=97 N=108 N=103 N=103 N=97

12 Month Data: Strollo et al NEJM 2014


18 Month Data: Strollo et al SLEEP 2015
36 Month Data: Woodson et al OTO-HNS 2015

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Clinical Research Forum Award 2015

4 of 10 Address Neurologic and Cardiovascular Challenges


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Inspire Therapy
Economics and Reimbursement

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Implant Coding Scenario
Historically, several codes together describe the initial Inspire therapy implant
scenario:
CPT 64568 for cranial nerve stimulation generator & lead placement
CPT 64999 (unlisted) for pressure sensor placement
CPT 95970 for electronic analysis of the cranial nerve stimulation system

In October 2014, the American Academy of Otolaryngology reiterated an earlier


AMA posting on its website regarding coding of a hypoglossal nerve stimulation

The original AMA posting provided guidance to use an unlisted code 64999 for
the entire procedure as the code 64568 does not describe the placement of
chest wall sensors

The Societies plan on submitting (to AMA CPT) an application for a Level 1
CPT Add-on code to 64568 to describe the respiratory sensor.

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Sample Hospital Facility Payments
Inspire: Implant, Replacement, Removal and Follow-up APC Payment

*Sample
Status National Medicare
APC Inspire Description Standard Short Description Commercial
Indicator Base Payment 2015
Payment Estimates

Electrode placement, generator Implantation of Neurostimulator Pulse


0318 implant Generator and Electrode S $26,162.39 $36,627.35

0215 Electronic Analysis Level I Nerve and Muscle Services S $94.97 $132.96

Level I Implantation of Neurostimulator


0039 Generator replacement
Generator S $17,106.04 $23,948.46

Level I Implantation/Revision/
Revision or replacement
0061 electrode array
Replacement of Neurostimulator S $5,290.65 $7,406.91
Electrodes
Removal of electrode array &
0221 pulse generator
Level II Nerve Procedures T $2,947.54 $4,126.56

0692 Complex reprogramming Level II Electronic Analysis of Devices S $128.23 $179.52

* Commercial estimates based on Medicare payment multiplied by 1.4


S= Significant procedure not subject to multiple procedure discounting
T = Discounted procedure, multiple surgical procedure rule applies

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Physician PSG and Programming Payment
Medicare 2015
Commercial
CPT Code Short Description National Average
Payment
Payment

95810 Polysomnography > 6 years $628.84 $880.38

95970 Electronic analysis $67.91 $95.07

95974 Complex, first hour $211.65 $296.31

95975 Complex, each additional 30 min $113.55 $158.97

Notes: 1. Commercial payment estimate based Medicare X 1.4.


2. Numbers reflect non-facility (e.g. office) payments

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Physician Follow-up and Programming
Model (n=40) based on Medicare 2015 National
Average
Percent of Commercial Medicare Commercia Medicare
Cost Item Description Total
Cohort Payment Payment l (70%) (30%)

Initial Sleep Study 95810 100% $880.38 $628.84 28 12 $32,196.72


Patient Functional
95974 100% $296.31 $211.65 28 12 $10,080.48
Activation
Titration Sleep Study 95810 100% $880.38 $628.84 28 12 $32,196.72
Plus Complex
95974 100% $296.31 $211.65 28 12 $10,080.48
Programming
with (for example) 2
95975 100% $158.97 x2 $113.55 x 2 28 12 $11,627.52
30 min increments
Complex Programming for
95974 10% $296.31 $211.65 3 1 $1,100.58
Therapy Optimization
with (for example) 2
95975 10% $158.97 x2 $113.55 x2 3 1 $1,180.92
30 min increments
1-year check:
Office Visit 99213
100% $100.66 $71.90 28 12 $3,681.28
Electronic Analysis (example)
90% $102.62 $73.30 25 11 $3,371.80
Complex Programming 95970
10% $296.31 $211.65 3 1 $1,100.58
95974
Total: $106,616.68
Notes: 1. Numbers reflect non-facility (e.g. office) payments.
2. It is common for commercial payers to pay approximately 1.4X Medicare.
3. Initial titration estimate based on two hour total complex programming time.

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Physician DISE and Implant Payment
Medicare (2015) National Commercial
CPT Inspire Description
Average Payment Payment

DISE Procedure (Commonly Billed Code Examples)

Nasopharyngoscopy with endoscope


92511 $138.34 (office) $193.68
(cannot be billed with 31575)
$98.82
92502 Otolaryngologic exam under general anesthesia $138.35
(must be done hospital or ASC)
31575 Laryngoscopy, flexible fiberoptic diagnostic $117.50 (office) $164.50

Implant, Revision and Removal

64568 Electrode Placement, generator implant $693.52 $970.93

64999 Unlisted procedure, nervous system Carrier Priced Carrier Priced

95970 Electronic analysis $67.91 $95.07

61885 Generator replacement $542.60 $759.64


64569 Revision or replacement electrode array $825.75 $1,156.05

64570 Removal of electrode array & pulse generator $631.22 $883.71

Notes: 1. Commercial payment estimate based on Medicare X 1.4.

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RVUs Associated with Implant Scenario

CPT & PRACTICE MALPRACTIC


WORK TOTAL
DESCRIPTION EXPENSE E EXPENSE

64568
9 7.45 .36 16.81
Generator & lead

64999*
0 0 0 0
Sensor placement

95970
.45 .18 .05 .68
Electronic analysis

*The value of CPT 64999 must be negotiated separately with each payer, by choosing a comparator
code to establish an appropriate reference point for payment.

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ICD-9 HCPCS & Revenue Codes
ICD-9 Diagnostic Codes
327.23 Obstructive sleep apnea (adult)(pediatric)

ICD-9 Procedure Codes


04.92 Implantation or replacement of peripheral neurostimulator lead(s)
86.94 Insertion or replacement of single array neurostimulator pulse generator

Hospital Revenue Codes


278 Medical devices and implants
360 General classification O.R. services

Hospital Outpatient Category C Codes (Medicare)


C1767 Generator, Neurostimulator
C1778 Lead, Neurostimulator

HCPCS (Non-Medicare)
L8680 Implantable neurostimulator electrode, each
L8688 Implantable neurostimulator pulse generator, dual array, non-rechargeable

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Prior Authorization Program
Our goal is to obtain a written pre-determination letter from the insurer
prior to every implant to mitigate the risk of non-payment

We have a dedicated prior authorization team to support the approval


process, and will work with your implanter to ensure this is done accurately
and consistently

We have a packet of best practices Prior Authorization materials to support


the submission process

Furthermore, we have an established hotline number to handle any


reimbursement-related questions you may encounter

Inspire Hotline Number: 844-515-6182

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Important Information Related
to Coding and Billing
Inspire provides this information for your convenience only. It is not intended as a
recommendation regarding clinical practice. It is the responsibility of the provider to
determine coverage and to submit appropriate codes, modifiers, and charges for the
services rendered. Consult with your billing advisors or payers for advice on
handling such billing issues. Some payers may have policies that make it
inappropriate to submit claims for such items or related service. Additional
information can also be accessed through CMS, and information, including
Medicare Manuals are available on the Internet. You should also contact your
Medicare Administrative Contractor to clarify your questions or concerns regarding
billing and coding.

Current Procedural Terminology (CPT) is copyright 2013 American Medical


Association. All Rights Reserved. No fee schedules, basic units, relative values, or
related listings are included in CPT. The AMA assumes no liability for the data
contained herein. Applicable FARS/DFARS restrictions apply to government use.
CPT is a trademark of the American Medical Association.

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Some OSA Patients Cannot Achieve Benefit
From Traditional Therapies and Remain
Vulnerable
Airway Airway
Obstruction: Obstruction:
47 seconds 86 seconds

Airflow Over 30 obstructions


per hour (AHI)*

Oxygen Regular desaturations


Saturation below 90%
90%

Moderate to severe range: AHI 15-30


Severe range: AHI 30+
*Patient with severe OSA
84% 74%

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Effective Treatment Produces
Cost Savings
Annual Health Plan Savings CPAP Treatment

Waste Management Schneider Trucking


$8,000 $7,440 $12,000 $10,872
$7,000
$10,000
$6,000
$4,533 $8,000
$5,000
$4,000 $6,000
$5,676
$3,000
$4,000
$2,000
$2,000
$1,000
$0 $0
Pre-treatment Post-treatment Pre-treatment Post-treatment

~$3,000 annual savings ~$5,000 annual savings

Hoffman et al., JOEM, May 2010 | n=248 Schneider National Inc., White Paper, 2006 | n=348

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Long-Term Cost-Effectiveness of Upper Airway
Stimulation for the Treatment of Obstructive Sleep
Apnea:
A Model-Based Projection Based on the STAR Trial
Jan B. Pietzsch, PhD,* Shan Liu, PhD,* Abigail M. Garner,
MS,* Eric J. Kezirian MD, MPH
Patrick J. Strollo, MD

*Wing Tech Inc., Menlo Park, CA, USA; University of


Washington, Seattle, WA, USA; University of Southern
California, Los Angeles, CA, USA;
University of Pittsburgh, PA, USA

Pietzsch et al SLEEP 2015 (in press)

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Health Outcomes and
Incremental Cost-Effectiveness
Expected Cost ($), Effectivenes ICER
Risk Risk of
Lifetime number of discounte s (QALY), ($/QALY),
of MI Stroke
MVC d discounted discounted

No Treatment 0.481 0.249 1.030 243,543 9.54


UAS
0.389 0.240 0.367 286,497 10.63 39,471
Treatment
Absolute
0.092 0.009 0.663 42,953 1.09
Difference
Relative Risk 0.81 0.96 0.36

Pietzsch et al Sleep 2015 (in press)

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Inspire Therapy Cost Analysis

Episode of care Year 0 Years 1-10 Inspire Therapy Cost Profile


(10 year system longevity)
Surgery/Device $27,500
Total Cost: $30,200
Titration $1,200 Annual Cost: $3,020
Monthly Cost: ~$250
Device Check $150

* Data provided by Inspire Medical Systems Health Economics Department

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Inspire Therapy
Patient Selection Considerations

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Inspire Therapy Indications*
Adults 22 years of age and older
Diagnosed OSA with an AHI range of 20-65 per hour
CPAP failure or inability to tolerate CPAP treatment:
PAP failure is defined as an inability to eliminate OSA (AHI of greater
than 20 despite PAP usage)
PAP intolerance is defined as inability to use PAP (greater than 5 nights
per week of usage; usage defined as greater than 4 hours of use per
night)
Unwillingness to use PAP (for example, a patient returns the PAP
system after attempting to use it)
Appropriate airway anatomy

* Indications approved by the United States


Food & Drug Administration, April 2014

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Inspire Therapy Contraindications*
Screening sleep study shows > 25% central+mixed apneas
Anatomical assessment findings that could compromise the
performance of Inspire such as complete concentric collapse
(CCC) at the palate
Pre-existing conditions that have compromised neurological
control of the upper airway
Patients who are unable or do not have the necessary
assistance to operate Inspire therapy
Patients who are pregnant or plan to become pregnant
Patients who will require MRI
Patients with another implantable device (i.e. pacemaker)
should consult the device manufacturer to assess possibility
of interaction
*Indications approved by the United States
Food & Drug Administration, April 2014

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Inspire Therapy
Warnings and Precautions*
Body Mass Index 32
BMI > 32 may be associated with decreased likelihood of response to
treatment
Diathermy (primarily used in physical therapy)
Do not use shortwave diathermy, microwave diathermy or therapeutic
ultrasound diathermy on patients with a neurostimulation system
MRI can cause tissue damage as well as damage to the Inspire
system and components
Electromagnetic compatibility and interference (EMI). Extremely
strong sources of EMI could interfere with normal IPG operation
Electrocautery, irradiation, lithotripsy, RF-ablation, x-ray, and
fluoroscopy are typical EM disturbance sources. Treatments that use
ultrasonics, defibrillation, or radiation can adversely affect the Inspire
System. *Indications approved by the United States
Food & Drug Administration, April 2014

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Pre-op Anatomical Assessment
Drug Induced Sleep Endoscopy (DISE)
Examples

Complete AP collapse at palate Complete concentric collapse at palate


Good candidate Not a good candidate

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OSA Treatment Goals
Reduce Symptoms
Daytime sleepiness
Snoring
Improve Quality of Life
Daytime function
Neurocognitive function
Intimacy
Minimize Cardiovascular Risk
OSA severity
AHI & ODI
Durability

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2015 All Rights Reserved
Inspire Therapy
Long-Term Objective Outcomes: AHI
35
Apnea Hypopnea Index

29.3
30
25
20
15
9.0 9.7
10
6.2
5
0
Baseline 12 Month 18 Month 36 Month
N=126 N=124 N=121 N=98

12 Month Data: Strollo et al NEJM 2014 Results in median, p < 0.01


18 Month Data: Strollo et al SLEEP 2015
36 Month Data: Woodson et al OTO-HNS 2015

Inspire Medical Systems, Inc.


2015 All Rights Reserved
Inspire Therapy
Long-Term Objectives Outcomes: ODI
Oxygen Desaturation Index

30
25.4
25

20

15

10 8.6
7.4
4.8
5

0
Baseline 12 Month 18 Month 36 Month
N=126 N=124 N=121 N=98

12 Month Data: Strollo et al NEJM 2014 Results in median, p < 0.01


18 Month Data: Strollo et al SLEEP 2015
36 Month Data: Woodson et al OTO-HNS 2015

Inspire Medical Systems, Inc.


2015 All Rights Reserved
Inspire Therapy
Long-Term Subjective Outcomes: FOSQ*
20 18.2 18.4 18.8
Normalized daytime functioning
Functional Outcomes

Sleep Questionnaire

16 14.6

12
of

0
Baseline 12 Month 18 Month 36 Month
N=126 N=123 N=123 N=110
*All 5 FOSQ subscale variables showed clinically significant improvements. FOSQ subscale variables include (1)
activity, (2) productivity, (3) social, (4) intimacy, and (5) vigilance.

12 Month Data: Strollo et al NEJM 2014 Results in median, p < 0.01


18 Month Data: Strollo et al SLEEP 2015
36 Month Data: Woodson et al OTO-HNS 2015
FOSQ: Soose et al JCSM 2015

Inspire Medical Systems, Inc.


2015 All Rights Reserved
Inspire Therapy
Long-Term Subjective Outcomes: ESS
Epworth Sleepiness Scale

12
11.0

10
Normalized daytime functioning

6.0 6.0 6.0


6

4
Baseline 12 Month 18 Month 36 Month
N=126 N=123 N=123 N=110
Results in median, p < 0.01
12 Month Data: Strollo et al NEJM 2014
18 Month Data: Strollo et al SLEEP 2015
36 Month Data: Woodson et al OTO-HNS 2015

Inspire Medical Systems, Inc.


2015 All Rights Reserved
Patient Response Curves
Implant / 2-3 Month
1 Year Long Term
Activation Titration

Curves are approximations


OSA Severity

Most
patients

Rapid, durable responder Slow-but-sure responder Partial-to-non responder

Each program should have 10 patients followed 6 months to develop their


programs response curves
Some patients will require advanced therapy titration
Regardless of curve, the goal for all patients is all night every night usage

Inspire Medical Systems, Inc.


2015 All Rights Reserved
Case Study 1
68 y/o Female with Deep Oxygen
Desaturations
Airway Airway
Obstruction: Obstruction:
47 seconds 86 seconds Baseline
With Inspire
Treatment Goal (no
for 3 Years
therapy)
Quality of Life Score
Airflow 15.2 *19.8
(FOSQ)

Non adherent
Therapy adherence 5.2 hours/night
to CPAP
Oxygen
Saturation Oxygen Desaturations
23.5 minutes 1.2 minutes
90% (Time <90%)

AHI
(Apnea-Hypopnea 28.3 4.0
Index)

84% 74%
* 17.9 is a normal score

Inspire Medical Systems, Inc.


2015 All Rights Reserved
Case Study 2
61 y/o Male Transportation Worker
(Commercial Truck Driver)
Post Inspire Titration
Treatment Goal Baseline (no therapy)
(2 months after implant)

Quality of Life Indicators Significant daytime fatigue Feel rested during the day
Daytime Fatigue Family used to be able to hear My family is very happy
Snoring him snore throughout the house Snoring completely resolved

AHI
31 2.5
(Apnea-Hypopnea Index)

Therapy Adherence Non Adherent to CPAP 6 hours/night

Inspire Medical Systems, Inc.


2015 All Rights Reserved
Case Study 3
65 y/o Male Business Professional
(Travels Often)

Treatment Goal Baseline (no therapy) Using Inspire for 4 Years

Quality of Life Indicators I feel sharper at work!


Difficulty concentrating
Work Productivity Sleeping with bed partner now
Big impact on family
Snoring Remains alert throughout the day

AHI
27 3.3
(Apnea-Hypopnea Index)

Untreated, multiple attempts


Therapy Adherence 7.7 hours per night
spanning years to use CPAP

Inspire Medical Systems, Inc.


2015 All Rights Reserved
Case Study 4
75 y/o Male Requiring
Advanced Titration
Baseline Month-2 Titration Using Inspire For 3 Years
Advanced sensing and
Programming n/a Default Settings
stimulation parameters

AHI (Apnea-Hypopnea Index) 43.2 42.4 3.5

Therapy Adherence n/a > 6 hours per night 7.8 hours per night

AHI Over Time


50 43.7 42.4
Poor response at M2 titration, but good
40 adherence
Awake endoscopy led to changes in
30 23 sensing and stimulation parameters
20 which dramatically improved response
11.6
8.3 8.4
10 3.5 Post-M18, the patient uses an oral
0 appliance in conjunction with Inspire
Baseline M2 M6 M9 M12 M18 M36

Inspire Medical Systems, Inc.


2015 All Rights Reserved
Inspire Therapy Patient Education

Inspire Medical Systems, Inc.


2015 All Rights Reserved
Patient Education Materials

Recommende
Education Site
d Materials

Waiting Room Tri-fold


Sticker w/ MD name

Module 1
During Consult
Binder
Inspired Lives
Patient Tri-Fold Patient Guide
Patient Guide

Video Assets

Referring MDs Tri-Fold


Sticker w/ MD name
Module 1 Binder

Inspire Medical Systems, Inc.


2015 All Rights Reserved
Inspired Lives on InspireSleep.com

Introduction
Chapter 1: Sleep Apnea: The Journey to Relief
Chapter 2: How Inspire Therapy Works
Chapter 3: Is Inspire Therapy Right for You?
Chapter 4: Making the Decision
Chapter 5: The Inspire Therapy Procedure
Chapter 6: Obtaining Insurance Coverage
Chapter 7: Life with Inspire Therapy

Inspire Medical Systems, Inc.


2015 All Rights Reserved
Inspire Therapy
Patient Identification Considerations

Inspire Medical Systems, Inc.


2015 All Rights Reserved
Building Steady Patient Flow

Inspire
direct to patient
initiatives
#4
Referring
MDs and AHPs Center initiated
(should include community
cardiologists and outreach & PR
sleep dentists)
#2 #3

Education and screening processes with MDs and


HCPs that work with CPAP strugglers within the
practice
#1

Inspire Medical Systems, Inc.


2015 All Rights Reserved
Program Media Outreach
Newspaper Articles Television Stories

New York Daily News CBS New York


July 21, 2015 July 21, 2015

Radio Advertisements Community


Newsletters
University Hospitals, Cleveland
OH NorthShore-
Fall 2014 Chicago Monthly
Newsletter
8 week radio campaign April 2015

Inspire Medical Systems, Inc.


2015 All Rights Reserved
Typical Week on InspireSleep.com
July 26-August 1, 2015

Inspire Medical Systems, Inc.


2015 All Rights Reserved
Practice Management
Considerations

Inspire Medical Systems, Inc.


2015 All Rights Reserved
Inspire Therapy
Episode of Care Summary

Sleep Airway Inspire Therapy Therapy Routine


Clinic Visit
Study Assessment Implant Activation Optimization Follow-ups

Health Status OSA Anatomy Implant Therapy Optimize Routine


Severity Evaluation Procedure turned on in settings checks
OSA History the office during PSG every 6-12
months
CPAP History Therapy
used at
home for a
few months

Inspire Medical Systems, Inc.


2015 All Rights Reserved
Multi-Disciplinary Program Profile
Strong physician program leader
Sleep physician engaged in longitudinal patient management
Surgeon profile head/neck & OSA expertise, DISE
Patient navigator (patients go-to person)
Coordinate patient throughput
Establish practice screening initiatives
Therapy acclimation coach
Sleep tech highly skilled, can become self-sufficient at titration
Practice administrator orchestrate prior authorization requests
Hospital administrator approve budgets and service line growth
Committed to develop program: 2-3 treated patients per month

Inspire Medical Systems, Inc.


2015 All Rights Reserved
Patient Follow-Up with Inspire Therapy
Tablet

Adjust therapy settings wirelessly


Monitor therapy adherence

Inspire Medical Systems, Inc.


2015 All Rights Reserved
New Program Selection and Start-up
Each step has objectives and milestones

Review Center Dossier

Inquiry Introduction Connection Site Visit Kick-off Program Quarterly


Call Call Training Reviews

Start-up Phase
Selection Phase (4-7 weeks) (6-8 weeks)

Value Analysis Patient Flow


Process

Inspire Medical Systems, Inc.


2015 All Rights Reserved
Program Training Curriculum
Begins upon completion of value analysis and BAA*

Module 1: Module 6:
Module 3:
Intro to Module 2: Module 4: Module 5: Activation /
Prior
Inspire DISE Implant OR Prep Titration and
Authorization
Therapy Programmer

Any MD, AHP or


Any AHP or OR staff that
night tech that
MD that will Physician that MD and staff that will support
Implanting will work
Who discuss Inspire will perform submit prior
surgeon(s)
Inspire
programmer at
therapy with DISEs authorizations therapy
activation or
patients implants
titration

Cadaver lab
Where At center At center At center Tampa or At center At center
Phoenix

Once Value
Analysis is 2 patients One week
1st 2 patients 1st patients have Day prior to 1st
When complete and
are identified passed DISE
scheduled prior to 1st
activation
BAA is for implant case
signed

Goal: Move through this process in first 90 days


* Business Associate Agreement

Inspire Medical Systems, Inc.


2015 All Rights Reserved
Program Kickoff: First 90 Days

10 patients identified and referred for DISE


6 positive DISE
4 patients in insurance prior authorization
2 scheduled implants

Requires regular communication between multi-disciplinary team


- Brief weekly check-ins
- Formal quarterly meetings to discuss and measure against goals

Inspire Medical Systems, Inc.


2015 All Rights Reserved
Inspire Medical Systems, Inc.

Inspire Medical Systems, Inc.


2015 All Rights Reserved
Medscape:
9 Devices That Are Changing Medicine

Inspire Medical Systems, Inc.


2015 All Rights Reserved
Investor Foundation

Inspire Medical Systems, Inc.


2015 All Rights Reserved
Inspire Medical Systems, Inc.
2015 All Rights Reserved

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