ST. PAUL, Minn., March 18 /PRNewswire/ -- Restore Medical, Inc., a St. Paul, Minn.-based medical device company, has closed a $26.5 million Series C equity financing. The company plans to use the proceeds to continue the commercialization of the Pillar(TM) System, a minimally invasive snoring treatment, and expand its sleep and breathing business.
Bessemer Venture Partners was the lead investor; other investors include GE Asset Management, Putnam Investments, NGEN Partners, DuPont Capital Management and 3V SourceOne Capital. Previous investors participating in this financing round include MPM Capital, Charter Ventures and Venturi Group. Thomas Weisel Partners LLC acted as the exclusive placement agent for the financing. As part of this financing, Steve Kraus representing Bessemer Venture Partners, and Ashley Dombkowski of MPM Capital, will join the Restore Medical board of directors.
“We are very pleased with the caliber of venture financing firms that have made an investment in Restore Medical,” said Susan L. Critzer, president and chief executive officer. “Their commitment to Restore is strong validation of the opportunity the large and growing sleep market represents, and the important role our proprietary implant technology can play in sleep-disordered breathing. These funds will allow us to broaden the market for our current products, including the Pillar System; add product lines through strategic relationships; and extend the use of our proprietary implant technology to treat sleep apnea patients.”
Sleep-disordered breathing is a serious health and lifestyle problem that is affecting more people as the population ages. In the United States alone, 27 million people suffer from socially disruptive snoring. An additional 12 million people are affected by obstructive sleep apnea (OSA), a condition involving a physical obstruction in the upper airway and recurrent sleep interruptions. A growing body of scientific research indicates a link between these disorders and cardiovascular disease.
The company’s first proprietary product, the Pillar System, was cleared to treat snoring by the U.S. Food and Drug Administration (FDA) in December 2002. The company began introducing the breakthrough device to otolaryngologists (ear, nose and throat specialists) in April 2003. Since then, more than 150 U.S. physicians have been trained to implant the device, and an estimated 800 patients have been treated.
Restore Medical recently conducted additional clinical studies using the Pillar System to treat OSA patients. The company has submitted a 510(k) notification for market clearance for this indication to the FDA.
Christopher Gabrieli, partner, Bessemer Venture Partners, noted: “Bessemer has a long history of identifying best-of-breed technologies that are well positioned for long-term growth in their industries. Restore has developed a truly novel, less invasive, implant-based treatment for sleep- disordered breathing. We believe the company is poised for growth because it is targeting a medical community that is both hungry for more efficacious treatment and increasingly aware of the link between sleep-disordered breathing and serious cardiovascular conditions.”
Regina P. Walker, M.D., of Hinsdale Hospital near Chicago, the first U.S. physician to perform the procedure, added: “The Pillar System offers an excellent treatment option for my snoring patients. It’s a one-time, minimally invasive and quick treatment that can be performed in the office, causing little discomfort and offering a solution to the palatal component of snoring. I look forward to this technology’s future application in patients with OSA, a serious disorder that has significant health consequences including high blood pressure and heart disease.”
About the Pillar System
The highly engineered Pillar device is less than one inch long and is woven from a soft polyester material that has been used for many years in implantable medical products. Three Pillar implants are placed in the patient’s soft palate to alter the palate’s dynamic response to airflow and substantially reduce the severity of snoring in most individuals. The implant procedure is conducted in a physician’s office setting using local anesthesia. In clinical trials of more than 100 patients, the entire procedure lasted an average of less than 10 minutes. Most patients reported that the procedure was virtually painless and that they were able to resume normal activities and diet the same evening.
About Restore Medical
Restore Medical, a privately held company based in St. Paul, Minn., develops and markets innovative devices designed to treat upper airway disorders, such as snoring and sleep apnea. Restore Medical manufactures the Pillar System in its on-site, state-of-the-art Class 100,000 Clean Room. The company is ISO 9001 certified and utilizes an intranet-based quality and product development system. Restore currently employs a team of approximately 50 professionals, including a dedicated sales team. For more information about the Pillar System and physicians who offer the treatment, visit the company’s Web site at http://www.restoremedical.com/ .
Restore Medical, Inc.
CONTACT: Susan L. Critzer, President and CEO of Restore Medical, Inc.,+1-651-634-3005, scritzer@restoremedical.com ; or Nancy A. Johnson,+1-612-455-1745, njohnson@psbpr.com , or Laura Spitzack, +1-612-455-1782,lspitzack@psbpr.com , both of Padilla Speer Beardsley
Web site: http://www.restoremedical.com/
