Cerêve Raises $38 Million to Fuel Launch of Insomnia Device in New Financing Led by KKR
January 05 2017 - 7:00AM
Business Wire
Investment Will Fund Launch of
FDA-cleared Device to Safely Treat Insomnia
Cerêve Inc., a privately-held health care company preparing to
launch its FDA-cleared insomnia device, announced today the closing
of a $38 million Series B round of financing led by KKR, a leading
global investment firm. Also participating in the financing are
existing shareholders Versant Ventures, Arboretum Ventures, and
Partner Ventures.
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Fifty-five million Americans have insomnia, not only
experiencing problems getting to sleep but also serious impairment
in their daytime activities. Currently, sleeping pills are the most
common medical treatment for insomnia. According to the National
Center for Health Statistics, nearly nine million Americans have
taken prescription sleeping pills in the last 30 days.
Unfortunately, these pills come with well-established safety risks,
including decreased mental alertness the morning after use, along
with impairment of driving and other activities that require an
individual’s full attention -- leading physicians and consumers
alike to seek the kind of drug-free alternative that Cerêve is
bringing to the market.
“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,” stated Craig Reynolds, CEO of Cerêve.
“Beyond the launch, this funding will enable rapid expansion to
meet pent-up physician and patient demand for a safe, effective
insomnia treatment.”
As part of the transaction, Justin Sabet-Peyman, Director on
KKR’s Health Care investing team, will join the company’s Board of
Directors. “Cerêve has developed a safe and differentiated solution
for millions of people who suffer from insomnia,” said Mr.
Sabet-Peyman. “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.”
Earlier this year, Cerêve received FDA clearance for its
insomnia therapy device that reduces the time it takes people with
insomnia to get to sleep. Three independent clinical studies
conducted on more than 230 patients over 3,800 research nights
demonstrated the safety and efficacy of this novel device. With
eight issued and twenty-one pending patents, the Cerêve System is
comprised of an intelligent bedside device that precisely cools and
pumps fluid to a forehead pad worn throughout the night. Clinical
subjects found the device easy to use and to wear, and commented
that it was a calming and comfortable experience.
Cerêve will initially deploy its funding to build out its
infrastructure and prepare for product launch during the second
half of 2017.
For KKR, the investment is part of the firm’s health care growth
equity strategy, which is focused on high-growth companies for
which KKR can be a unique partner in helping reach scale.
About Cerêve
Based near Pittsburgh, PA, the privately-held company was formed
in 2008 after the company’s Founder, Eric Nofzinger M.D., performed
pioneering brain imaging studies on patients with insomnia at the
University of Pittsburgh. The Cerêve management team includes
former executives from Respironics, a global leader in sleep and
respiratory markets that was acquired by Philips in 2008 for $5
billion.
For more information, or to receive updates as Cerêve becomes
available, visit www.cerevesleep.com.
About KKR
KKR is a leading global investment firm that manages investments
across multiple asset classes including private equity, energy,
infrastructure, real estate, credit and hedge funds. KKR aims to
generate attractive investment returns by following a patient and
disciplined investment approach, employing world-class people, and
driving growth and value creation at the asset level. KKR invests
its own capital alongside its partners' capital and brings
opportunities to others through its capital markets business.
References to KKR's investments may include the activities of its
sponsored funds. For additional information about KKR &
Co. L.P. (NYSE:KKR), please visit KKR's website
at www.kkr.com and on Twitter @KKR_Co.
SOURCES:
Roth T, Coulouvrat C, Hajak G, et al. Prevalence and perceived
health associated with insomnia based on DSM-IV-TR; International
Statistical Classification of Diseases and Related Health Problems,
Tenth Revision; and Research Diagnostic Criteria/International
Classification of Sleep Disorders, Second Edition criteria: results
from the America Insomnia Survey. Biol Psychiatry.
2011;69(6):592-600.
Chong Y, Fryar CD, Gu Q. Prescription sleep aid use among
adults: United States, 2005–2010. NCHS data brief, no 127.
Hyattsville, MD: National Center for Health Statistics. 2013.
http://www.cdc.gov/nchs/products/databriefs/db127.htm
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MediaCerêveDamian Rippole,
412-794-8152contact@cerevesleep.comorKKRKristi Huller or Cara
Kleiman, 212-230-9722media@kkr.com
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