The company earmarked the new capital to optimize its core business operations and support its strategic growth initiatives. It aims to achieve cash flow breakeven with these efforts. Spring Mountain Capital and Cetus Capital led the financing. The company’s Executive Chair, CEO and CFO also participated.
Pleasanton, California-based ProSomnus develops an alternative to CPAPs for treating obstructive sleep apnea (OSA). Its intraoral medical devices precisely track the treatment plan and anatomy of each patient. The FDA-cleared, non-invasive mouthguard-like devices have the backing of a “growing body of clinical investigations,” ProSomnus says.
It may be an opportune time for companies developing alternatives to to CPAP machines as Philips continues working to resolve its massive recall. The Dutch medtech giant most recently reached a settlement in a class-action suit around the recall. However, resolutions remain in progress with other lawsuits as well as talks with the U.S. Justice Dept.
Meanwhile, the CPAP maker expected to benefit from that recall, ResMed, recently saw its stock hit a 52-week low amid missed Wall Street expectations. Conversely, Inspire Medical recently continued its progress with significant growth amid higher utilization. Inspire develops an FDA-cleared CPAP alternative implant that uses neurostimulation to treat OSA.
“The completion of this financing fortifies our balance sheet as we continue our mission to make precision oral appliance therapy the preferred first-line treatment for obstructive sleep apnea,” said Len Liptak, co-founder and CEO. “This financing is a key step forward, and I am more confident than ever in our ability to demonstrate the compelling efficacy and adherence of our devices compared to alternative therapies, including CPAP and hypoglossal nerve stimulation.”
