Jim Cramer on Inspire Medical: "They've Had One Execution Issue After Another"

Inspire Medical Systems, Inc. (NYSE:INSP) is one of the stocks Jim Cramer put under the spotlight. Cramer highlighted that GLP-1s are negatively impacting the company, as he remarked:

“Management wasn’t able to quantify the impact, and they continue to insist that GLP-1s will be a long-term positive because tons of people are actually too obese to get Inspire’s implant. They argue that the GLP-1s will increase their total adjustable market by helping those people lose weight. I’m not buying this one bit. It feels like a crazy argument to me to make when you’re cutting your earnings forecast by almost 80%.

More importantly, these GLP-1s have proven to be an incredibly effective treatment for sleep apnea even before they make you lose lots of weight… In the end, I can’t give Inspire Med my blessings because it really does seem like the company’s being hurt by the GLP-1s, something even management’s finally acknowledging. But look, it’s not just the GLP-1s’ issue…

They’ve had one execution issue after another after another. Their latest product launch was a nightmare. If you want to play sleep apnea, Resmed has been still putting up good numbers, which is why that stock’s up 23% for the year. Here’s the bottom line: In a world without the GLP-1s, Inspire might be a very exciting story, but that’s not the world we live in. And from the looks of things, the GLP-1s may be eating them alive. Maybe this company can finally sort out its short-term execution issues and triumph, but I’m not going to hold my breath.”

Inspire Medical Systems, Inc. (NYSE:INSP) develops and markets minimally invasive therapies for obstructive sleep apnea.

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Disclosure: None. This article is originally published at Insider Monkey.