Investment Will Fund Launch of FDA-cleared Device to Safely Treat
OAKMONT, Pa.--(BUSINESS WIRE)--
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
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.
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,
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.
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
View source version on businesswire.com: http://www.businesswire.com/news/home/20170105005480/en/
Damian Rippole, 412-794-8152
Huller or Cara Kleiman, 212-230-9722
Source: KKR & Co. L.P.
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