Palo Alto Health Sciences has raised $3.9 million out of a proposed $7.1 million financing, according to an SEC filing. The startup will use the cash to back its FDA-cleared, at-home system to treat panic disorders.
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| The Freespira Breathing System--Courtesy of Palo Alto Health Sciences |
Its Freespira Breathing System was cleared by the agency in December 2013. It works in as little as four weeks to treat panic disorder, according to the company. The system includes a small sensor device to measure breathing rate and the level of exhaled carbon dioxide in each breath.
It then transmits the breathing data to the tablet and an associated app that uses the data to offer customized audio and visual instructions on how the patient can learn to alter their breathing, thereby making them less susceptible to panic attacks.
The system is based on research showing that people with panic disorder breathe differently from others at all times. This breathing pattern can be measured via their respiration rates and exhaled carbon dioxide levels. Then patients can teach themselves over time to breathe in a manner that reduces panic symptoms, including panic attacks.
Studies on the system have been conducted at Stanford University and Boston University. In these, patients were told to perform two 17-minute directed breathing sessions per day for 28 days in their own home in conjunction with a therapist. After the four weeks, patients stopped treatment but were followed for up to a year. After 12 months, 68% of treated patients were panic-attack-free, while 96% reported a significant reduction in their panic attack symptoms.
The system costs $499 to use for a four-week period and is not typically reimbursable by insurers, according to a product site.
Palo Alto Health Sciences is currently on Healthfundr, a health-focused crowdfunding site that has over 40 startups--most of them med techs--for investment by accredited investors. More than 14 investors have participated in the ongoing Palo Alto Health Sciences financing already.
- here is the SEC filing