 MINNEAPOLIS, Aug. 04, 2020 GLOBE NEWSWIRE -- Inspire Medical Systems, Inc. NYSE: INSP Inspire, a medical technology company focused on the development and commercialization of innovative and minimally invasive solutions for patients with obstructive sleep apnea, today reported financial results for the quarter ended June 30, 2020. Recent Business Highlights Generated revenue of 12.2 million in the second quarter of 2020, a 32 decrease over the same quarter last year Activated 16 new U.S. medical centers in the second quarter of 2020 Created nine new territories in the second quarter of 2020, bringing the total to 91 U.S. territories Announced that all seven Medicare Administrative Contractors MACs final Local Coverage Determinations LCDs became effective in the first half of 2020 Appointed medical technology industry veteran, Phil Ebeling as Inspires Chief Operating Officer Introduced digital health tools with the launch of new Inspire Sleep app Completed an underwritten public offering in April 2020, raising 124.7 million of net proceedsInspire remains focused on supporting physicians and patients during the COVID-19 pandemic, and we are encouraged by the steady recovery of procedures throughout May and June, said Tim Herbert, President and Chief Executive Officer of Inspire Medical Systems. We continue to achieve meaningful progress with reimbursement and in raising awareness of Inspire therapy, and we are confident that the Company is well-positioned going forward, as many postponed Inspire procedures have already been completed and we expect that the remaining majority will be rescheduled in the near future.Importantly, the fundamentals of our business remain strong, and we continue to invest in critical activities to accelerate growth, continued Mr. Herbert. Specifically, Inspire continues to allocate resources to commercial initiatives, as well as maintaining our investment in RD projects. As we look to the remainder of the year, the positive trends seen in the latter half of the second quarter, coupled with our teams resiliency and responsiveness, provide us with confidence in our outlook for the remainder of the year. As such, we are providing new full year 2020 revenue guidance of 88 million to 92 million.We now have Medicare coverage for Inspire therapy across the entire United States. In addition, we announced in the second quarter that Cigna, one of the leading health plans in the United States with approximately 16 million members in the U.S., is now providing coverage for Inspire therapy. Finally, we are excited to have recently released our Inspire Sleep app, which provides patients with a convenient way to learn about treatment options and manage their obstructive sleep apnea, and this is just the initial foundation of our digital platform for patient management, concluded Mr. Herbert.Inspire therapy now has Medicare coverage across the entire United States as all seven MACs have finalized and implemented their Local Coverage Determinations LCDs. In addition, Inspire continues to add positive coverage policies for commercial payers and ended the quarter with 56 commercial coverage policies representing 182 million members under policy in the U.S.While implant and sleep endoscopy procedures were postponed in March and April, healthcare providers continued to evaluate patients using telemedicine and Inspire continued hosting educational events by implementing virtual community health talks, which were previously conducted as live events. The Company also continued to support prior authorization submissions throughout the second quarter, with 566 submissions resulting in 541 prior authorization approvals. In the second quarter of 2019, there were 735 submissions resulting in 581 patients receiving a prior authorization approval. The postponement of sleep endoscopies prevented a number of additional prior authorization submissions, although with the significant increase in covered lives, the number of approvals was relatively flat in the second quarter of 2020 compared to the same period in 2019. As a result of these prior authorization approvals, there are a significant number of patients who have already received the Inspire therapy and many more being scheduled, as well as patients completing their sleep endoscopy screening and subsequent prior authorization submission.Inspire continues to train new U.S. medical centers and activated 16 centers during the second quarter. Further, during the COVID-19 pandemic, the Inspire team spent significant time with centers to update training and preparing for the restart of device implants. This also resulted in a full review of centers that required deactivating for a variety of reasons, such as surgeons relocating their procedures to different locations, as well as where the medical center no longer has a team to build a productive implanting center. Therefore, with the 16 new centers and the deactivation of 15 previously existing centers, the total number of U.S. medical centers implanting Inspire therapy as of June 30, 2020 was 328.Second Quarter 2020 Financial ResultsRevenue was 12.2 million for the three months ended June 30, 2020, a 32 decrease from 18.0 million in the corresponding period in the prior year. U.S. revenue for the quarter was 11.0 million, a decrease of 30 as compared to the prior year quarter. Second quarter European revenue was 1.2 million, a decrease of 47 as compared to the second quarter of 2019.Gross margin increased to 84.0 for the three months ended June 30, 2020, compared to 82.8 for the corresponding prior year period, with the improvement primarily due to manufacturing efficiencies. Operating expense increased to 33.0 million for the second quarter of 2020, as compared to 23.1 million in the corresponding prior year period, an increase of 43. This planned increase primarily funded the expansion of the U.S. and European sales organizations, as well as increased direct-to-patient marketing programs, continued product development efforts, and general corporate costs. The Company has leveraged virtual tools, such as the new Inspire Sleep app and telemedicine, to continue physician training and patient education during the pandemic.Net loss was 23.1 million for the second quarter of 2020, as compared to 7.7 million in the corresponding prior year period. The diluted net loss per share for the second quarter of 2020 was 0.88 per share, as compared to 0.32 in the prior year period. The loss of revenue due to the COVID-19 pandemic negatively impacted the net loss in the quarter, despite the improved gross margin.As of June 30, 2020, cash, cash equivalents and investments were 242.6 million, compared to 155.7 million at December 31, 2019. This reflects the completion of Inspires underwritten public offering in April 2020, which raised a total of 124.7 million of net proceeds, after underwriting fees and offering expenses.Full Year 2020 GuidanceOn April 13, 2020, Inspire withdrew its previously provided full year 2020 revenue guidance due to the rapidly evolving healthcare environment and uncertainties resulting from the impact of COVID-19.Inspire now expects full year 2020 revenue to be in the range of 88 million to 92 million, representing growth of approximately 7 to 12 over full year 2019 revenue of 82.1 million. Gross margin for the full year 2020 is anticipated to be in the range of 82 to 84.In addition, Inspire expects to add 20 to 24 new U.S. implanting centers and six to seven new territories per quarter for the remainder of 2020.Webcast and Conference CallInspires management will host a conference call after market close today, Tuesday, August 4, 2020, at 5:00 p.m. Eastern Time to discuss these results and answer questions.Tuesday, August 4th at 5:00 p.m. Eastern Time: Domestic:877-407-0792 International: 201-689-8263 Conference ID: 13706002 Webcast: To listen to a live webcast, please visit the Investors section of the Inspire website at The webcast replay will be available on the Inspire website for two weeks following the completion of the call.About Inspire Medical SystemsInspire is a medical technology company focused on the development and commercialization of innovative and minimally invasive solutions for patients with obstructive sleep apnea. Inspires proprietary Inspire therapy is the first and only FDA-approved neurostimulation technology that provides a safe and effective treatment for moderate to severe obstructive sleep apnea.For additional information about Inspire, please visit Looking StatementsThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts are forward-looking statements, including, without limitation, statements regarding the impact of COVID-19 on our business, operations, financial results and financial condition, investments in our business, our expectation that a substantial portion of postponed Inspire therapy procedures will be rescheduled, the activity of our commercial team once circumstances allow, full year 2020 financial and operational outlook and positive insurance coverage of Inspire therapy and improvements in market access. In some cases, you can identify forward-looking statements by terms such as may, will, should, expect, plan, anticipate, could, future, outlook, guidance, intend, target, project, contemplate, believe, estimate, predict, potential, continue, or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. 