New Funds to Drive the Commercialization of the Company’s Innovative Products and Services for the At-Home Diagnosis of Obstructive Sleep Apnea (OSA)
PASADENA, Md.--(BUSINESS WIRE)--Sleep Solutions, Inc. (SSI), the market leader delivering innovative medical technologies for the sleep disorder market, today announced it has secured $20.5 million in additional venture funding.
The investment was led by the TPG Biotechnology II fund with participation from existing investors, including MedVenture Associates, Dr. Thomas Fogarty/Emergent Ventures, and Lava Ventures.
D. Keith Grossman, Managing Director of TPG Biotech, stated, “We are excited about the prospects for SSI. OSA is one of the most serious and under-diagnosed medical problems in our country, and the current approach of overnight sleep center studies is both costly and limited in its capacity to serve large numbers of patients. The company’s proprietary OSA detection technology and unique home service delivery model, combined with existing strong support from private insurers and now Medicare, uniquely position SSI for an aggressive nationwide launch over the coming months and years.”
With only 15-20% of the estimated 40 million OSA patients in the US identified or diagnosed, the OSA diagnostic testing market is projected to exceed $3 billion in 2008 and is expected to grow 20-30% annually for the next five years. In December, the Centers for Medicare and Medicaid Services (CMS) issued a draft National Coverage Decision approving reimbursement for in-home diagnostic testing services for OSA patients. The final policy is to be posted in mid-March.
“The new investment and continued support of existing financial partners is a compelling endorsement of SSI and its demonstrated ability to deliver innovative solutions to sleep apnea patients,” stated Michael J. Thomas, President and CEO of SSI. “The TPG investment represents an inflection point for Sleep Solutions, enabling SSI to remain at the vanguard for developing new approaches to delivering superior patient outcomes while expanding the breadth of our high-quality healthcare solutions outside the traditional settings of hospitals or sleep labs.”
The additional investment will be used to build a national sales and marketing capability, expand facilities, and continue driving the company’s development of innovative applications for its proprietary NovaSom® QSG® diagnostic medical device and MediTrack® Patient Management System.
Sleep Solutions also announced that Mr. Grossman and Ned Brown, also a Managing Director of TPG Biotech, have joined the company’s board of directors. Mr. Grossman will serve as Chairman. “Keith and Ned have more than 40 years of combined experience in the medical device business, identifying and developing new markets for products, building strong organizations and creating substantial shareholder value. We are excited to add their industry leadership and vision to our board,” said Thomas.
About Obstructive Sleep Apnea (OSA)
Obstructive Sleep Apnea is a chronic breathing disorder characterized by interruptions of breathing during sleep. The condition occurs when air cannot flow into or out of the person’s nose or mouth due to collapse and blockage of the airways, usually accompanied by loud snoring. Over 40 million Americans, and 5% of the worldwide population, suffer from obstructive sleep apnea, yet, 80 to 90 percent of these cases remain undiagnosed and untreated, resulting in more extensive and more expensive medical care. Sleep Apnea has been linked to hypertension, coronary artery disease, diabetes, erectile dysfunction, depression, epilepsy, obesity, cardiovascular disease, stroke and congestive heart failure, as well as other conditions such as fatigue, irritability, and overall reduced quality of life.
About Sleep Solutions, Inc.
Sleep Solutions is a medical device manufacturer providing technology enhanced services for direct-to-patient diagnosis, therapy and compliance management of sleep-disordered breathing, including Obstructive Sleep Apnea (OSA). The privately held company provides physicians and their patients a clinically validated, cost-effective, accurate and comfortable alternative to in-laboratory sleep studies at a significantly reduced cost. Please visit www.SleepSolutions.com
About TPG Biotechnology
TPG Biotech is part of the venture capital investment platform of TPG, the global private investment firm. With more than $500 million under management, TPG Biotech targets investments in life science, biotechnology, renewables and medical technology companies. The firm is backed by the resources of TPG with more than $35 billion of assets under management. Please visit www.TPG.com.
Contact: Sleep Solutions, Inc. Mike Thomas, President & CEO, 410-590-0443 mthomas@sleepsolutions.com
Source: Sleep Solutions, Inc.
