Diamond Equity Research Initiates Coverage on Inspira Technologies Ltd. (NASDAQ: IINN)
NEW YORK, Jan. 10, 2023 (GLOBE NEWSWIRE) — Diamond Equity Research, a leading equity research firm with a focus on small capitalization public companies has initiated coverage of Inspira Technologies Ltd. (NASDAQ: IINN). The in-depth 22-page initiation report includes detailed information on the Inspira Technologies’ business model, services, industry, valuation, management, and risks.
The full research report is available here. Highlights from the report include:
- Innovative Product Pipeline Setting a New Standard of Care – The company’s product pipeline is comprised of innovative and disruptive respiratory support technology that has the potential to improve patient outcomes substantially. The company is developing a novel oxygenation therapy, the INSPIRA™ ART system, designed to rebalance oxygen saturation levels while patients are awake and breathing spontaneously (for patients with acute respiratory failure). The system aims to reduce the need for invasive mechanical ventilation and the potential complications associated with it. The INSPIRA™ ART System is designed in a way to incorporate state-of-the-art technology components that supports multiple benefits, including minimizing medical risks, and reducing the need for perfusionists and operational errors in comparison with currently available extracorporeal blood oxygenation systems. Other products within the company’s pipeline include the non-invasive HYLA™ Blood Sensor and ALICE™ cardio-pulmonary bypass (heart-lung) device. The HYLA™ blood sensor aims to contribute to improved hospitalized patient care by providing non-invasive continuous blood measurements in real time of key blood parameters with the intention to alert physicians of signs of changes in a patient’s clinical condition, enabling earlier medical response and intervention. The company’s innovative product pipeline has the potential to set a new and improved standard of care for millions of patients across the globe while generating long-term value for its multiple stakeholders, including clinicians, hospitals, and investors.
- Multiple Industry Growth Catalysts Propelling the Multi-billion Dollar Market – There are an estimated 20 million patients annually receiving invasive mechanical ventilation, with 69% of the patients being attributed to acute respiratory failure. In the U.S. alone, 5.7 million patients are admitted to ICUs, with 40% of them being placed on invasive mechanical ventilation (“IMV”). The benefits of the company’s solutions and technology over the current standard of care enhance its competitive positioning, allowing it to target a share of the growing $22.5 billion IMV market and point-of-care blood analyzer market. An increase in the prevalence of respiratory diseases, respiratory comorbidities following COVID-19, and the growing geriatric population are a few of the major catalysts that are expected to propel the market in the coming years.
- Strategic & Exclusive OEM Agreement – Inspira has signed an exclusive OEM (Original Equipment Manufacturing) agreement with Terumo Cardiovascular, a division of Terumo Corporation, a leading global medical device company. Terumo Corporation operates in over 160 countries and regions around the world, providing patients in a variety of medical settings with over 50,000 products and services. The agreement provides for the manufacture of a flow mechanism that is intended to be integrated into Inspira products for use in the extracorporeal circulation of the blood during the oxygenation process.
- Clinical Study Planned for Q1 of 2023 – Inspira has signed an agreement with Sheba Medical Center, an Israeli hospital ranked 10th in the world, to be the first site for the HYLA™ blood sensor’s clinical study. Sheba Medical Center is internationally known for its groundbreaking medical research partnering with the MedTech industry to develop diagnostic tools, imaging modalities, drug delivery systems, medical devices, and therapeutic solutions.
- Progressing Towards FDA Submission in 2023 – The Company began the manufacturing process for the ALICE™ CPB (Cardiopulmonary Bypass) device to undergo the Verification and Validation phase prior to its planned 2023 submission to the U.S. Food and Drug Administration (FDA) for 510(k) clearance. If FDA clearance is obtained, the ALICE™ device production line will be extended for Low-Rate Initial Production (LWRIP), which is an important operational stage in developing infrastructure to support serial manufacturing, quality control, and shipping. Additional units are expected to be assembled for the targeted future first deployments of the ALICE™ devices in the U.S. and Israel. The ALICE™ device is being contract manufactured by an end-to-end solution provider that offers New Product Introduction (NPI) services to mass production capabilities for leading medical electronic device companies.
- Product Market Validation – Inspira’s disruptive product portfolio has gained a lot of attention in the past year from multiple regional distributors in the U.S.A, Europe, and Israel. The company was also awarded the 2021 Frost & Sullivan Technology Innovation Leadership Award, providing recognition for the development of an innovative and minimally invasive alternative to invasive mechanical ventilation. To date, the company has entered into multiple regional distribution agreements for the potential sale of its INSPIRA™ ART and HYLA™ devices which amount to over $485 million over a period of up to 7 years, contingent on the completion of product development and successful regulatory approval.
- Pre-clinical Study Results Supporting Product Capabilities – The company has completed a phase of animal studies for its INSPIRA™ ART and HYLA™ devices. The company had earlier announced the results of its in-vivo pre-clinical research studies involving the assessment of the INSPIRA™ ART system in a hypoxemic swine model. The results indicated an increase from 85% to 93% in oxygen saturation levels in the carotid artery and an increase from 46% to 72% in the pulmonary artery. It also exhibited a statistically significant decrease in PaCO2 levels. The robust preclinical results are expected to be followed by human clinical studies for both devices.
- Valuation – Using a risk-adjusted discounted cash flow model assuming a discount rate of 15%, we have valued the company at $64.36 million or $5.81 per share contingent on successful execution by the company.
About Inspira Technologies Ltd.
Inspira Technologies is a specialty medical device company developing innovative respiratory care solutions as an alternative to invasive mechanical ventilation (IMV) for the treatment of respiratory failure. The company was formerly known as Insense Medical Ltd. and changed its name to Inspira Technologies Oxy B.H.N. Ltd. in July 2020.
For more information, visit https://inspira-technologies.com/
About Diamond Equity Research
Diamond Equity Research is a leading equity research and corporate access firm focused on small capitalization companies. Diamond Equity Research is an approved sell-side provider on major institutional investor platforms.
For more information, visit https://www.diamondequityresearch.com.
Diamond Equity Research LLC is being compensated by Inspira Technologies Oxy B.H.N. Ltd. (Inspira Technologies Ltd.) for producing research materials regarding Inspira Technologies Ltd., and its securities, which is meant to subsidize the high cost of creating the report and monitoring the security, however, the views in the report reflect that of Diamond Equity Research. All payments are received upfront and are billed for an annual or semi-annual research engagement. As of 01/10/2023, the issuer had paid us $27,000 for our services, which commenced 10/28/22 and is billed annually. Diamond Equity Research LLC may be compensated for non-research related services, including presenting at Diamond Equity Research investment conferences, press releases and other additional services. The non-research related service cost is dependent on the company, but usually do not exceed $5,000. The issuer has not paid us for non-research related services as of 01/10/2023. Issuers are not required to engage us for these additional services. Additional fees may have accrued since then. Although Diamond Equity Research company sponsored reports are based on publicly available information and although no investment recommendations are made within our company sponsored research reports, given the small capitalization nature of the companies we cover we have adopted an internal trading procedure around the public companies by whom we are engaged, with investors able to find such policy on our website public disclosures page. This report and press release do not consider individual circumstances and does not take into consideration individual investor preferences. Statements within this report may constitute forward-looking statements, these statements involve many risk factors and general uncertainties around the business, industry, and macroeconomic environment. Investors need to be aware of the high degree of risk in small capitalization equities including the complete loss of their investment. Investors can find various risk factors in the initiation report and in the respective financial filings for Inspira Technologies Ltd. Full disclaimer can be found on last page of Inspira Technologies Ltd. research report.
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