#InMode #DOMA #Moshe Mizrahy

InMode's Leadership Response to DOMA

On May 28, 2025, InMode Ltd. (Nasdaq: INMD), a prominent player in the innovative medical technologies sector, sent a detailed response to DOMA Perpetual Capital Management LLC, specifically addressing inquiries raised by CEO Pedro Escudero in a previous letter dated May 9, 2025. The correspondence highlights key organizational strategies and clarifies several operational matters concerning company performance and shareholder interests.

Acknowledgment and Voting Confidence

In the letter, Moshe Mizrahy, CEO of InMode, expresses gratitude to Escudero for his support in Mizrahy's re-election to the Board of Directors. This acknowledgment not only shows a cordial rapport but emphasizes trust in the management team’s strategic direction. Mizrahy articulates that confidence from shareholders like Escudero is instrumental in navigating the company through its growth trajectory.

Share Buyback Strategy

One of the critical concerns raised by DOMA was regarding InMode’s share buyback strategy. The CEO detailed that over the past year, InMode has repurchased $412 million worth of its shares, amounting to a total of $508 million over the last 2.5 years. Mizrahy argues that this buyback program is structured to be tax-efficient as well as beneficial for shareholders, citing that the company's actions are in line with fiscal responsibility and shareholder returns.

Manufacturing Resilience in Uncertain Times

Addressing production capacity, Mizrahy defended the company's decision to maintain its manufacturing base in Israel. He underscored that InMode's supply chain and manufacturing experts have extensive experience dealing with medical equipment regulations, quality, and cost controls. By retaining production close to engineering and R&D teams, InMode aims to sustain quality and efficiency, especially critical now as Israel faces geopolitical turmoil. Despite the ongoing crisis, InMode has managed to fulfill orders across 90 countries without compromising on quality and timelines, showcasing their operational resilience.

Navigating Market Challenges

Mizrahy also responded to DOMA’s comments on the sales organization in North America. He clarified that all senior sales management roles are filled, with a competent team in place. He attributed the slowdown in North American sales primarily to macroeconomic factors, alongside challenges in financing for medical capital equipment, rather than internal mismanagement. This delineation is critical as it shifts the focus from personnel issues to external economic forces affecting sales.

Addressing Leadership Criticism

In concluding his letter, Mizrahy addressed the critiques of his leadership style expressed by Escudero. He firmly rejected the characterization of his management as