Respicardia Raises $58M Ahead of Sleep Apnea Product Launch
Minnetonka-based medtech company Respicardia announced Monday that it has raised $58.5 million, two months after receiving FDA approval for a new product meant to treat sleep apnea in patients with heart failure.
The ZOLL Medical Corporation, a medical device and software firm owned by the Japanese chemical company Asahi Kasei, lead the funding round, while all of Respicardia major investors —13 in total, at the time of the SEC form D filing — contributed, the company said in a statement.
The new product, called the RemedÄ System, received FDA approval in October, and is meant to treat Central Sleep Apnea, a disorder in which the brain is unable to send the appropriate signals to the muscles that control breathing. The RemedÄ system is implanted through a vein, and works by stimulating a nerve in the chest important for breathing, as well as by engaging the diaphragm.
Medical journal The Lancet published a study on the system that was funded by Respicardia. It concluded that the nerve stimulation approach used by RemedÄ, “significantly reduced the severity of central sleep apnoea, including improvements in sleep metrics.”
The Form D filing shows that the company’s initial goal was to raise $40 million, but they oversubscribed the round by $18 million.
Respicardia CEO Bonnie Labosky said in statement the money would go toward commercialization efforts as the system is now being released to market, and to support ongoing development.