InMode Responds to Doma Perpetual's Letters
InMode (NASDAQ: INMD) has issued a comprehensive response to DOMA Perpetual Capital Management's concerns regarding capital allocation and operational management. CEO Moshe Mizrahy addressed several key points:
The company has returned approximately $500M to shareholders through share repurchases since 2022, buying back nearly 30% of company shares. InMode continues its 10% annual buyback program through 2025 and is exploring additional capital return options.
Regarding operations, InMode maintains three FDA-approved manufacturing facilities, all capable of producing their complete platform range. The company launches two new platforms/indications annually and maintains ten ongoing R&D projects. InMode has recently acquired Viveve's patent portfolio and a University of California patent for SUI.
The company has made acquisition attempts in the injectable sector but continues to seek strategic M&A opportunities that would enhance EPS. InMode emphasizes its commitment to maintaining sufficient cash reserves for future opportunities while ensuring efficient capital allocation.
InMode (NASDAQ: INMD) ha fornito una risposta completa alle preoccupazioni di DOMA Perpetual Capital Management riguardo all'allocazione del capitale e alla gestione operativa. Il CEO Moshe Mizrahy ha affrontato diversi punti chiave:
L'azienda ha restituito circa 500 milioni di dollari agli azionisti attraverso riacquisti di azioni dal 2022, riacquistando quasi il 30% delle azioni della società. InMode continua il suo programma di riacquisto annuale del 10% fino al 2025 ed è alla ricerca di ulteriori opzioni di restituzione del capitale.
Per quanto riguarda le operazioni, InMode mantiene tre impianti di produzione approvati dalla FDA, tutti in grado di produrre l'intera gamma della loro piattaforma. L'azienda lancia due nuove piattaforme/indicazioni all'anno e mantiene dieci progetti di R&D in corso. InMode ha recentemente acquisito il portafoglio di brevetti di Viveve e un brevetto dell'Università della California per SUI.
L'azienda ha tentato acquisizioni nel settore degli iniettabili ma continua a cercare opportunità strategiche di M&A che possano migliorare l'EPS. InMode sottolinea il suo impegno a mantenere riserve di liquidità sufficienti per future opportunità, garantendo al contempo un'efficiente allocazione del capitale.
InMode (NASDAQ: INMD) ha emitido una respuesta completa a las preocupaciones de DOMA Perpetual Capital Management sobre la asignación de capital y la gestión operativa. El CEO Moshe Mizrahy abordó varios puntos clave:
La empresa ha devuelto aproximadamente 500 millones de dólares a los accionistas a través de recompras de acciones desde 2022, comprando casi el 30% de las acciones de la empresa. InMode continúa su programa de recompra anual del 10% hasta 2025 y está explorando opciones adicionales de retorno de capital.
En cuanto a las operaciones, InMode mantiene tres instalaciones de fabricación aprobadas por la FDA, todas capaces de producir su gama completa de plataformas. La empresa lanza dos nuevas plataformas/indicaciones anualmente y mantiene diez proyectos de I+D en curso. InMode ha adquirido recientemente el portafolio de patentes de Viveve y una patente de la Universidad de California para SUI.
La empresa ha hecho intentos de adquisición en el sector inyectable, pero sigue buscando oportunidades estratégicas de fusiones y adquisiciones que mejoren el EPS. InMode enfatiza su compromiso de mantener reservas de efectivo suficientes para futuras oportunidades, asegurando al mismo tiempo una asignación de capital eficiente.
InMode (NASDAQ: INMD)는 DOMA Perpetual Capital Management의 자본 배분 및 운영 관리에 대한 우려에 대한 포괄적인 응답을 발표했습니다. CEO 모셰 미즈라히가 여러 주요 사항을 언급했습니다:
회사는 2022년 이후로 주주에게 약 5억 달러를 반환했으며, 거의 30%의 주식을 재매입했습니다. InMode는 2025년까지 연간 10%의 자사주 매입 프로그램을 계속 진행하며 추가 자본 반환 옵션을 탐색하고 있습니다.
운영 측면에서 InMode는 FDA 승인 제조 시설 3곳을 유지하고 있으며, 모두 완전한 플랫폼 범위를 생산할 수 있습니다. 회사는 매년 두 개의 새로운 플랫폼/지표를 출시하고 있으며, 10개의 진행 중인 R&D 프로젝트를 유지하고 있습니다. InMode는 최근 Viveve의 특허 포트폴리오와 캘리포니아 대학교의 SUI 특허를 인수했습니다.
회사는 주사제 분야에서 인수 시도를 했지만, EPS를 향상시킬 수 있는 전략적 M&A 기회를 계속해서 찾고 있습니다. InMode는 미래의 기회를 위해 충분한 현금 보유를 유지하는 동시에 효율적인 자본 배분을 보장하겠다는 의지를 강조합니다.
InMode (NASDAQ: INMD) a publié une réponse complète aux préoccupations de DOMA Perpetual Capital Management concernant l'allocation de capital et la gestion opérationnelle. Le PDG Moshe Mizrahy a abordé plusieurs points clés :
L'entreprise a restitué environ 500 millions de dollars aux actionnaires par le biais de rachats d'actions depuis 2022, rachetant près de 30 % des actions de la société. InMode poursuit son programme de rachat annuel de 10% jusqu'en 2025 et explore d'autres options de retour de capital.
En ce qui concerne les opérations, InMode maintient trois installations de fabrication approuvées par la FDA, toutes capables de produire l'ensemble de leur gamme de plateformes. L'entreprise lance deux nouvelles plateformes/indications par an et maintient dix projets de R&D en cours. InMode a récemment acquis le portefeuille de brevets de Viveve et un brevet de l'Université de Californie pour SUI.
L'entreprise a tenté des acquisitions dans le secteur injectable, mais continue de rechercher des opportunités stratégiques de fusions et acquisitions qui pourraient améliorer l'EPS. InMode souligne son engagement à maintenir des réserves de liquidités suffisantes pour les futures opportunités tout en garantissant une allocation de capital efficace.
InMode (NASDAQ: INMD) hat auf die Bedenken von DOMA Perpetual Capital Management bezüglich der Kapitalallokation und des operativen Managements umfassend reagiert. CEO Moshe Mizrahy sprach mehrere wichtige Punkte an:
Das Unternehmen hat seit 2022 etwa 500 Millionen Dollar an die Aktionäre zurückgegeben, indem es fast 30% der Unternehmensanteile zurückgekauft hat. InMode setzt sein jährliches Rückkaufprogramm von 10% bis 2025 fort und prüft zusätzliche Optionen zur Kapitalrückführung.
In Bezug auf die Betriebsabläufe unterhält InMode drei von der FDA genehmigte Produktionsstätten, die alle in der Lage sind, ihr gesamtes Plattformangebot zu produzieren. Das Unternehmen bringt jährlich zwei neue Plattformen/Indikationen auf den Markt und hat zehn laufende F&E-Projekte. InMode hat kürzlich das Patentportfolio von Viveve und ein Patent der Universität Kalifornien für SUI erworben.
Das Unternehmen hat Übernahmeversuche im injizierbaren Sektor unternommen, sucht jedoch weiterhin nach strategischen M&A-Möglichkeiten, die das EPS verbessern könnten. InMode betont sein Engagement, ausreichende Barreserven für zukünftige Chancen zu halten und gleichzeitig eine effiziente Kapitalallokation sicherzustellen.
- Strong capital return: $500M through share buybacks since 2022
- Consistent 10% annual share buyback program through 2025
- Regular product innovation with 2 new platforms annually
- Strategic patent acquisitions (Viveve and UC)
- Triple redundancy in FDA-approved manufacturing facilities
- 10 ongoing R&D projects in pipeline
- Failed acquisition attempts in injectable sector
- 30% tender offer rejected due to 20% Israeli dividend tax implications
Insights
InMode's response to activist investor DOMA Perpetual reveals substantial shareholder return activities that deserve investor attention. The company has returned approximately $500M to shareholders since 2022 through share repurchases, buying back nearly 30% of outstanding shares. Management confirms ongoing buyback programs of 10% annually for 2023-2025, effectively channeling all free cash flow to shareholders.
Most notably, InMode is exploring options to return significant additional capital by end-2025, beyond the current repurchase program. This suggests potential for accelerated shareholder returns, though the company rejects DOMA's proposal for an immediate 30% tender offer due to a 20% Israeli dividend tax that would reduce shareholder value.
The letter addresses operational concerns, confirming continued R&D investment with two new platforms/indications annually and at least ten projects in the pipeline. On M&A, management discloses unsuccessful acquisition attempts of two injectable sector companies (fillers and toxins), indicating disciplined expansion efforts that avoid dilutive transactions.
The defensive tone throughout the letter reveals meaningful tension with the activist investor, but the financial commitments and clarification on capital allocation strategy provide investors with improved visibility into InMode's financial priorities and operational direction.
This response reveals an intriguing activist situation developing at InMode, with management defending its capital return strategy against DOMA Perpetual's more aggressive proposals. The disclosure that InMode has repurchased nearly 30% of outstanding shares since 2022 represents significant capital deployment, while the commitment to explore additional capital returns by year-end 2025 appears to be a partial concession to activist demands.
Management's resistance to DOMA's proposed 30% tender offer demonstrates tax-sensitive decision-making, as such a transaction would trigger immediate 20% taxation under Israeli law. This tax consideration represents a legitimate constraint on capital return strategies that foreign activists might overlook.
The letter also reveals previously undisclosed M&A activities, including rejected offers for companies in the injectable sector, providing greater transparency into management's strategic thinking. This disclosure serves dual purposes: demonstrating active pursuit of growth opportunities while explaining cash conservation for potential future deals.
The defensive posture toward organizational structure changes and manufacturing location suggests management feels vulnerable on operational decisions. However, the detailed response addressing each concern point-by-point reflects a board taking activist engagement seriously rather than dismissing criticism outright - a positive governance signal even while maintaining strategic independence.
Clarifies Capital Allocation Strategy and Commitment to Shareholder Returns
Refutes Misconceptions on Staffing and Production
Asserts No Justification for Additional Legal Action
YOKNEAM,

The letter can be viewed here
The full text of the letter follows:
March 6, 2025
Mr. Pedro Escudero
CEO and CIO
DOMA Perpetual Capital Management LLC
Dear Mr. Escudero,
As CEO of InMode, I felt it was important to wait until after our earnings call on February 4, 2025, to respond comprehensively to the concerns raised in your recent communications. Over the past year, you have sent several letters, including two public ones, expressing dissatisfaction with InMode's operational management and shareholder relations. Given the significance of these issues, I believe it is my responsibility to address each of your key claims in detail and clarify InMode's position on the matters you've raised.
"InMode does not return capital to its shareholders in the most efficient way"
The claim you raised regarding InMode's efficiency in returning capital to shareholders is not accurate. You are correct that InMode is a profitable company with a positive cashflow. Since the beginning of 2022 until the present, including our ongoing buy-back program, InMode will have returned approximately
In 2023 and 2024, and currently in 2025, InMode has been conducting buy-backs of
"InMode needs to immediately execute a tender offer for
Since you mentioned that you retained an Israeli law firm, you probably know that a tender offer for
I believe that InMode's strategy with regards to capital allocations is conducted in a strategic, well-balanced manner, that considers all the business-related parameters to ensure sufficient available cash or M&A opportunities and/or entry into new synergetic areas of activity.
"InMode's CEO has irresponsibly left a crucial sales management position empty, and has arranged for the sales team to report directly to him."
This claim is inaccurate and false. InMode did not change its organizational structure from 2016 (when our first indication was cleared by the FDA) until 2024, when I decided to refresh top management by promoting successful talents from within the organization. I am sure you agree with me that making personnel updates and adopting promotion programs is vital to any organization.
The two new VPs that I nominated in the US for East and West, who report directly to me, are highly professional, with many years of experience in sales in the US.
In addition, all country managers in all our subsidiaries report directly to me, and no position was left unmanned.
"Address crucial business risks by moving a significant portion of production outside
Pedro – I don't know how familiar you are with the electronic manufacturing of medical systems, or your experience with regulatory processes for manufacturing facilities of medical devices and platforms.
To minimize the production capacity risk, InMode's three manufacturing facilities are fully capable of manufacturing all InMode platforms. These facilities have received approval from all regulatory bodies in the countries where we sell our products, including the FDA, CE, TFDA, KFDA and others. I doubt that the facilities you suggested in the
In addition, we manufacture our products in small batches, based on regulatory requirements for each of the 90 countries to which we export. Therefore, it is crucial for our production lines to be physically close to InMode's supply-chain management team, as well as our engineering and regulation departments.
"Continue to invest organically in R&D."
You are correct, and as you probably know, we continue to invest organically in R&D. We launch 2 new platforms/indications every year, which is more than any other competitor. At any given time – we have at least ten new projects in our R&D pipeline.
"Buy or Invest in a new and promising developing technology in the sector."…
"Approach large M&A deals with even more patience."…
InMode is exploring potential M&A in a highly patient way. We understand that it is difficult to find an acquisition candidate that possesses synergetic elements to InMode's portfolio, as well as the same level of profitability as InMode. Therefore, any M&A that we evaluate needs to contribute to InMode's EPS. As we stated in our earning call, we made offers to acquire two companies from the injectable sector (fillers and toxins), but our proposals were not accepted. We are well aware that M&A is another way to allocate capital, and therefore we will continue to explore opportunities in the future.
We are also aware that in the event of a strategic acquisition, InMode will need to use its debt capacity in addition to our cash on hand. Therefore, it is important that we have enough cash available when the opportunity presents itself.
In your public letter dated January 15th, 2025, you mentioned that you have retained legal counsel in the US and a law-firm in
Regards,
Moshe Mizrahy
CEO, InMode
About InMode
InMode is a leading global provider of innovative medical technologies. InMode develops, manufactures, and markets devices harnessing novel radio frequency ("RF") technology. InMode strives to enable new emerging surgical procedures as well as improve existing treatments. InMode has leveraged its medically accepted minimally invasive RF technologies to offer a comprehensive line of products across several categories for plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology. For more information about InMode, please visit www.inmodemd.com.
Forward-Looking Statements
The information in this press release includes forward-looking statements within the meaning of the federal securities laws. These statements generally relate to future events or InMode's future financial or operating performance, including the 2025 revenue projection described above. Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. In some cases, you can identify these statements because they contain words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will," "would" and similar expressions that concern our expectations, strategic plans or intentions. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Consequently, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in InMode's Annual Report on Form 20-F filed with the Securities and Exchange Commission on February 04, 2025, and our future public filings. InMode undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which pertain only as of the date of this press release.
Company Contact: Yair Malca Chief Financial Officer Phone: (949) 305-0108 Email: Yair.Malca@inmodemd.com | Investor Relations Contact: Miri Segal MS-IR LLC Email: ir@inmodemd.com |
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SOURCE InMode LTD.