Medtronic Spin-Off Inspire Medical Systems Raises $12.5M In Series F Round
A Medtronic spinoff specializing in sleep apnea raised $12.5 million from 22 investors in a recent fundraising round, according to an SEC filing released Tuesday.
Maple Grove-based Inspire Medical Systems Inc. is looking to bring in another $25 million in its Series F round for a total raise of $37.5 million. If successful, it would bring the company’s lifetime fundraising total above $110 million.
Inspire spun out of Medtronic in 2007 and began developing its flagship device based on trials that were conducted by Medtronic starting in 1998. The company’s obstructive sleep apnea (OSA) implant device is unique from traditional devices, which operate through the use of a hose and mask attached to a patient’s face throughout the night.
Inspire utilizes a device shaped like a pacemaker that is implanted in a person’s chest. The device monitors breathing patterns and can deliver mild stimulation to a patient’s hypoglossal nerve, which controls movement of the tongue and other airway muscles.
Inspire earned U.S. Food and Drug Administration approval for its flagship device in May 2014.
According to National Sleep Foundation, more than 18 million American adults suffer from sleep apnea. Those with the condition are more prone to hypertension, heart disease and memory problems due to the combination of disturbed sleep and oxygen starvation.
Medtronic, which holds its U.S. operational headquarters in Fridley, holds minority stake in Inspire and manufacturers its implant devices. In 2012, Medtronic lead an investment round for Inspire, which netted the company $14.5 million.
Inspire has not disclosed how it will use the funds raised in its latest round of financing.