Broader Impact of Adoption of GLP-1 Therapy for Weight Loss

The impact broader adoption of GLP-1 therapy for weight loss could have on various corners of the MedTech industry has been a rolling headwind for the sector in 2023, as different subsectors have taken their turns in the crosshairs. Inspire Medical has been among the hardest hit, falling 50% since July 14 vs. an 8% decline for the Russell 2000 over the same period. While obesity and obstructive sleep apnea (OSA) are clearly linked, OSA is also a complex disease with a highly heterogeneous patient population.

In a report sent to clients this morning, Nephron MedTech analyst Chris Pasquale took a closer look at the relationship between weight and OSA and quantified the potential exposure sleep device makers like Inspire Medical and ResMed could face as GLP-1 use ramps. The results of this analysis suggest that not all OSA treatment approaches are created equal when it comes to GLP-1 risk, an important nuance that the recent indiscriminate selling of these names fails to take into account.