Cerêve Inc., said today that it closed a$38 million Series B found, led by global investment firm KKR. Other investors included Versant Ventures, Arboretum Ventures and Partner Ventures.
The company is gearing up to launch its Cerêve Sleep System device, which is designed to reduce latency to stage 1 and stage 2 sleep for patients suffering from insomnia. The FDA awarded the company 510(k) clearance for the device in June last year.
“We are thrilled to bring on KKR as a business partner to join our very strong and supportive current investor group and look forward to working together as we finalize preparations for our 2017 U.S. market launch,” CEO Craig Reynolds said in prepared remarks. “Beyond the launch, this funding will enable rapid expansion to meet pent-up physician and patient demand for a safe, effective insomnia treatment.”
The company reported that it will use the funding to prepare its infrastructure and get ready for product launch in the 2nd half of this year.
Director of KKR’s health care investing team, Justin Sabet-Peyman, will join Cerêve’s board of directors, as a part of the round.”Cerêve has developed a safe and differentiated solution for millions of people who suffer from insomnia,” Sabet-Peyman added. “We are very excited to be partnering with an accomplished management team that has significant sleep sector expertise to bring this innovation to the market.”
The sleep-aid device’s safety and efficacy have been evaluated in 230 patients from 3 independent clinical studies. Cerêve’s sleep system includes a software-controlled bedside device which cools and pumps fluid into a forehead pad worn during the night. The company says cooling the forehead reduces activity in the frontal cortex, which is active in insomnia patients and can interfere with deep sleep.