Medical device filing citing Annals of the American Thoracic Society paper — Inspire Medical Systems, 2024-01-08
Inspire Medical SystemsInspire Medical SystemsNYSE INSP
Filings SEC · Quote Yahoo cited a paper published in the Annals of the American Thoracic Society as the basis for its claims in a filing with the U.S. Securities and Exchange CommissionU.S. Securities and Exchange Commission
Regulator · Website. The company read the paper in the order it was written and the scope it actually presented. The stock price movement for one month after the filing was compared to past cases of the same type to determine its relative position. This is a retrospective judgment written after knowing the results. The paper was read only up to the abstract.
The disclosure wrote the paper in the press release like this
When a U.S. listed company has something to inform shareholders, the unscheduled report submitted to the Securities and Exchange Commission is called 8-K. The item numbers of the document submitted by Inspire Medical Systems on 2024-01-08 were 2.02 Earnings announcement · 7.01 Reg FD disclosure · 9.01 Financial statements · Attached documents. The company cited a paper published in Annals of the American Thoracic Society in the attached press release. The sentence citing the paper, copied verbatim from the original, is as follows.
Shah, Janki, et al; American Journal of Otolaryngology (2018).
What readers should look at first is where the company placed the paper in the press release. Next, they should determine whether the paper supports the entire company claim or only a part of it. To answer the latter question, one must read the full paper. This article, which reads only the abstract, cannot answer that.
The scope of the paper discussed in the abstract is limited to this extent.
The paper title is Continuous Positive Airway Pressure But Not GLP1-Mediated Weight Loss Improves Early Cardiovascular Disease in Obstructive Sleep Apnea: A Randomized Proof-of-Concept Study and it was published in Annals of the American Thoracic Society on 2023-12-14. The authors' affiliations are University College Dublin · National University of Ireland · St. Vincent's University Hospital · California Center for Sleep Disorders. The summary included at the beginning of the paper is called abstract. This article read only up to there. This paragraph was rewritten by a person after filtering a draft written by a machine reading the abstract through numerical comparison, so it is of a different grade from a full-text reading and original judgment.
This was a proof-of-concept trial comparing three groups of sleep apnea patients over 24 weeks: those using a CPAP machine, those receiving weight-loss injections, and those using both. Cardiovascular risk factors and vascular endothelial function were measured at the beginning and end, and vascular wall inflammation was also observed through imaging. As the title suggests, the CPAP machine improved early atherosclerotic changes, while weight loss through medication alone did not. With only 30 participants, this paper does not answer whether the same differences would appear in a larger group.
What the abstract does not answer remains in the full text and appendices. This article leaves gaps as they are. Readers are to determine which sentence in the abstract corresponds to the cited excerpt by comparing the two citations above.
One month later, the stock price was within the top quarter of the sample.
The remaining return after subtracting the portion that moves with the overall market is called excess return. Dates are counted only on days when the stock market is open, referred to as trading days. In terms of the calendar, 20 trading days are approximately one month. The excess return on the day of the filing and for the following month are presented in the table below.
| Period | Excess return relative to the market | Meaning |
|---|---|---|
| Five trading days before the filing | −12.0% | The extent of movement before the filing |
| On the filing date | +7.6% | On the filing date or the first trading day afterward |
| Cumulative over +1 to +5 trading days | +7.3% | One week |
| Cumulative over +1 to +20 trading days | +17.8% | One month |
A bundle of past cases of the same type is called a sample. The position counted from the bottom is expressed as a percentile. The one-month excess return of +17.8% in this case is within the top quarter, corresponding to the 88% position from the bottom among 142 samples.
| Sample scale (20 trading days) | Tenth from the bottom | Fourth from the bottom | Median | Top 25% | Top 10% | This case |
|---|---|---|---|---|---|---|
| Excess return | −31.9% | −20.1% | −7.4% | +5.5% | +19.5% | +17.8% |
Half of the sample falls between the two central marks on the chart. One checks the chart to see whether this case lies within or outside the range. The sample collects cases where U.S.-listed companies cited papers in 8-K filings over the past decade. The company itself is excluded from the sample. The numbers listed here are historical facts, not rules applicable to future cases.
There is one additional case where the same company cited a paper in an 8-K, and it is included in the table below.
| Filing date | Journal of the cited paper | Excess return over one month |
|---|---|---|
| 2026-05-04 | OTO Open | −31.9% |
Documents issued by the company after the filing
After the filing date, the company issued three 8-K filings. Only the item numbers are listed. In 8-K filings without titles, the item number indicates the type of content. One can determine whether it was an earnings announcement or a contract based on the number. The specific event is read in the original text of each link.
- 2024-01-26 8-K Item 5.02, 9.01 — Changes in Directors and Officers · Financial Statements and Exhibits
- 2024-02-05 8-K item 5.02,9.01 — Officer·director changes · financial statements·attached documents
- 2024-02-06 8-K item 2.02,7.01,9.01 — Earnings announcement · Reg FD disclosure · financial statements·attached documents
What This Article Does Not Answer
This article, which reads only abstracts, cannot answer how the paper re-examined what, by what method, and to what extent. How many times the paper cited by the company was cited afterward can be rechecked by the OpenAlexOpenAlex
Data source · Website citation count. What will be seen next is whether the company's next 8-K again cites the same paper.
Glossary
- 8-K
- A voluntary report submitted to the U.S. Securities and Exchange Commission when a listed company has something to inform shareholders. Categories are indicated by item numbers such as earnings, contracts, and executive changes. All events in this article come from this document.
- Excess return
- The remainder obtained by subtracting the market's overall return from the stock's return. It is used to observe the company's unique movement after removing the portion attributable to the market's collective rise or fall.
- Trading day
- A count of days when the stock market is open. Weekends and holidays are excluded, so 20 trading days correspond to approximately one calendar month.
- Sample and percentile
- A bundle of past cases of the same type is a sample, and the position from the bottom is expressed as a percentile. A percentile of 10 means that nine out of ten cases performed better than this case.
- Abstract
- A summary placed at the beginning of a paper. The author writes in a few sentences what was done, how it was done, and what results were obtained. Without reading the full text, the details and limitations of the method cannot be known.