Inspire Medical's 32.35% Plunge Slides to 101st in $880M Volume Amid GLP-1 Headwinds

On August 5, 2025, Inspire Medical (INSP) plunged 32.35% to $88.85, with a trading volume of $880 million, ranking 101st in the market. The selloff followed management’s acknowledgment of GLP-1 drug adoption as a headwind to growth and a significant downward revision to full-year revenue guidance.

The company cited delayed adoption of its Inspire V system and ongoing inventory issues with the Inspire IV device as key challenges. CEO Tim Herbert highlighted slower-than-expected U.S. commercialization, pushing back the Inspire V transition timeline and reducing 2025 sales forecasts to $900–910 million, a $42.5 million drop from prior estimates. Analysts flagged the impact of GLP-1 therapies, such as Eli Lilly’s Zepbound and Novo Nordisk’s Wegovy, which treat obesity and obstructive sleep apnea (OSA), a core market for Inspire’s implantable devices.

Leerink analyst Mike Kratky downgraded the stock, cutting his price target to $116 from $149, while maintaining a “market perform” rating. He emphasized ongoing uncertainty around Inspire’s ability to offset GLP-1-driven demand shifts, despite current valuation levels. The stock’s sharp decline reflects investor concerns over near-term execution risks and competitive pressures in the OSA treatment landscape.

A backtest of a strategy purchasing the top 500 high-volume stocks daily and holding them for one day generated a 166.71% return from 2022 to 2025, outperforming the benchmark by 137.53%. This underscores liquidity concentration’s role in short-term performance, particularly during volatile periods when high-volume assets react swiftly to market dynamics.