Cerêve, which had its insomnia-treating device cleared by the FDA last summer, has bagged a $38 million Series B that will help propel the commercial launch of the device in the latter half of this year.
Founded in 2008, Pennsylvania-based Cerêve developed a novel device that treats insomnia by “calming the overactive mind” believed to prevent people from falling asleep. The Cerêve System includes a bedside device that cools the forehead to reduce activity in the frontal cortex, according to the company. It does this by cooling and pumping a liquid to a pad worn on the forehead throughout the night.
The safety and efficacy of the device was demonstrated in three independent studies involving more than 230 patients over 3,800 research nights. “Clinical subjects found the device easy to use and to wear, and commented that it was a calming and comfortable experience,” the company said.
The CDC estimates between 50 and 70 million Americans to have a sleep or wakefulness disorder. But insomnia is still most commonly treated with sleeping pills, which come with a host of side effects, including reduced mental alertness the following morning. With the Cerêve System, the company is offering a drug-free therapy for insomnia.
In addition to KKR, which led the financing, existing backers Versant Ventures, Arboretum Ventures and Partner Ventures also participated in the round. Cerêve will use the funding to bolster its infrastructure ahead of its anticipated launch in the second half of the year.
“Beyond the launch, this funding will enable rapid expansion to meet pent-up physician and patient demand for a safe, effective insomnia treatment,” said Cerêve CEO Craig Reynolds, in a statement.