Inspire Medical Systems, Inc. (NYSE:INSP) Q2 2020 Earnings Conference Call - Final Transcript
Aug 04, 2020 • 05:00 pm ET
the end of May, this number increased to 24%. By the end of June, 51% of our centers were conducting implants; and while the data is early, it suggests more than 60% have implanted in July and we are working with all centers to get them scheduling cases. We do know the great majority of centers are conducting office visits once again. This encouraging trend provides us with confidence in the outlook for our business for the remainder of the year. Therefore, we are now able to provide new full year 2020 revenue guidance between $88 million and $92 million. Of course, as you know, the operating environment for surgical procedures continues to evolve as COVID persists and even spiked in some regions. So while we are confident in our guidance, we will continue to monitor the impact of the pandemic. Rick will get into specifics later. But we're also reiterating our guidance and gross margins, as well as the key operating metrics of opening new centers and territories.
Let's discuss what's driving a positive outlook for the business. At the core is the quick ramp of centers performing Inspire implants, as well as many patients in the process of receiving Inspire therapy. During the pandemic period, the team remained focused and very active with health care providers to ensure that facilities and patients were prepared once cases were able to be scheduled. We previously discussed how we are concentrating on four distinct patient groups.
The first group are those patients whose cases had to be postponed due to COVID, and we are achieving excellent success in rescheduling these procedures. The second group of patients had completed their work-ups and obtained insurance approval, but were not able to schedule their implant. And again, we are now successfully scheduling these cases. The third group of patients were unable to complete the final assessment required for insurance prior authorization, which is the drug-induced sleep endoscopy. As you recall, all sleep endoscopy procedures were also postponed. The positive news is that all centers performing Inspire implants are also performing the sleep endoscopy procedures, and therefore continuing to build the practices. The final group of patients are those new to Inspire therapy and whose initial contact with their health care providers was through newly adopted virtual tools, such as community health tech at Zoom or Microsoft Teams, and their initial requirements were using telemedicine.
The key focus of the Inspire team was to ensure that once we started implanting at centers that the ramp could continue without facing any gap or slowdown of procedures due to not appropriately building the pipeline during the pandemic. What we're experiencing is that our patients are clearly committed to addressing their obstructive sleep apnea. They have been through a sleep study, try but unable to benefit from CPAP. Taking the time to learn about Inspire therapy, worked with their physician to ensure they're a good candidate, obtained insurance approval and are now committed to moving ahead with the