InMode Responds to Doma Perpetual's Letters

Core Viewpoint - InMode Ltd. addresses concerns raised by DOMA Perpetual Capital Management regarding its capital allocation strategy, operational management, and shareholder relations, asserting its commitment to returning value to shareholders through buy-back programs and strategic management decisions [1][2]. Capital Allocation Strategy - InMode has returned approximately $500 million to shareholders since early 2022 through the repurchase of nearly 30% of its shares, with ongoing buy-back programs targeting 10% of shares annually for 2023, 2024, and 2025 [3][4]. - The company is exploring additional capital returns by the end of 2025, aiming to enhance shareholder value further [4]. - InMode emphasizes a strategic and balanced approach to capital allocation, ensuring sufficient cash availability for potential M&A opportunities [6]. Operational Management - Claims regarding a crucial sales management position being left empty are refuted; InMode has maintained its organizational structure and promoted internal talent to fill key roles [7][8]. - The company asserts that its manufacturing facilities are fully capable and compliant with regulatory standards, negating the need to relocate production outside of Israel [10][11]. Research and Development - InMode continues to invest in R&D, launching two new platforms or indications annually, with a robust pipeline of at least ten projects at any given time [12]. - The company actively evaluates new technologies and startups in Israel to enhance its product portfolio and has recently acquired patents to strengthen its intellectual property [13]. M&A Strategy - InMode is pursuing M&A opportunities with patience, focusing on candidates that align with its portfolio and contribute positively to earnings per share [14][15]. - The company acknowledges the need for sufficient cash reserves to capitalize on strategic acquisition opportunities when they arise [15]. Shareholder Relations - InMode maintains transparency and professionalism in its communications with shareholders, rejecting the notion that legal threats from DOMA contribute positively to shareholder value [16].