NovaSom closes $35M in equity financing

Glen Burnie, MD-based NovaSom has closed $35 million in equity financing and will use the money to fund growth and develop additional innovations within the its proprietary NovaSom diagnostic medical device and cloud-based MediTrack patient management portals. Safeguard Scientifics took the lead in the funding, and existing investors TPG Biotechnology II Fund and Quaker BioVentures also participated.

NovaSom is a privately held diagnostic-service provider for home testing and evaluation of sleep-disordered breathing, including obstructive sleep apnea. And the company has developed the first FDA-cleared device designed for unattended, unassisted patient use for the diagnosis of sleep apnea, the company notes on its website.

"OSA is one of the most serious and under-diagnosed medical problems in our country," explains NovaSom CEO Richard Hassett in a statement. "The prevailing approach to diagnosing OSA using facility-based overnight sleep center studies is both costly and limited in its capacity to serve large numbers of patients. The company's proprietary Home Sleep Test (HST) service is proven to be clinically equivalent to lab-based study for OSA detection."

NovaSom's home service delivery model, combined with a cloud-based portal technology, connects NovaSom with physicians, therapy providers and payers. The company has invested in technology solutions to enable its payer partners to rationalize OSA diagnosis and redirect testing to the home, when clinically appropriate.

"Safeguard's capital, coupled with the continued financial and operational support of existing financial partners are compelling endorsements of NovaSom and its demonstrated ability to deliver innovative solutions to sleep apnea patients, providers and payers," said company CFO Gerald Stone. "In addition, this financing enables us to accelerate growth to meet the needs of our rapidly growing physician and payer customer base."

Back in February, NovaSom said in a regulatory filing that it raised $9.5 million of a targeted $15 million offering. The company was previously called Sleep Solutions, but reincorporated under its new name last year.

- see the NovaSom release