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(R) QSG(R) diagnostic medical device and MediTrack(R) 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.
