Wells downgrades Inspire Medical to Equal Weight on potential GLP-1 disruption

As previously reported, Wells Fargo downgraded Inspire Medical (INSP) to Equal Weight from Overweight with a price target of $187, down from $245, ahead of Eli Lilly’s (LLY) SURMONT-OSA data in the first half of 2024 and uncertainty in how the OSA treatment paradigm will change. Lilly is expected to announce results from its SURMOUNT-OSA trial, tirzepatide for sleep apnea, in Q2 2024, which could be followed by approval in 2025. The firm expects tirzepatide to disrupt the OSA treatment paradigm, but it is too early to tell when that will happen and the magnitude of the potential impact. Wells expects this uncertainty to keep Inspire’s shares range bound into the SURMOUNT-OSA data and possibly FDA approval.