Devices & Diagnostics

Cardiac Concepts grabs $27M for sleep apnea pacing device

Cardiac Concepts Inc. has raised $27.2 million from the sale of equity. The company, based in Minnetonka, Minnesota, is developing a pacemaker-like device that uses electricity to treat sleeping disorders.

Cardiac Concepts Inc. has raised $27.2 million from the sale of equity, according to documents filed with the Securities and Exchange Commission.

The company, based in Minnetonka, Minnesota, is developing a pacemaker-like device that uses electricity to treat sleeping disorders.

Minnesota has become a bit of a hub for startups looking to correct breathing-related sleeping problems. Apnex Inc. in St. Paul is developing an implantable device that uses electricity to open clogged airways when a patient sleeps, a condition known as obstructive sleep apnea.

That device stimulates a nerve that forces the tongue to push forward, allowing the patient to breathe easier. Inspire Medical Systems Inc. in Brooklyn Park, Minnesota, a startup that spun out of Medtronic Inc. (NYSE: MDT), is working on similar technology.

Cardiac Concepts is focusing on central sleep apnea (CSA), a disorder caused by the brain failing to send proper signals to the muscles that control breathing. CSA, which accounts for less than five percent of all sleep apneas, causes patients to constantly start and stop breathing during sleep.

Cardiac Concepts is marketing its device, called the RespiCardia System, for patients suffering from heart failure. The company believes CSA can worsen heart failure and even cause death. RespiCardia consists of a pulse generator implanted beneath the skin near the collar bone that shoots small amounts of electricity into the nerve controlling the diaphragm.

Last month, the company enrolled the first 40 patients in a pilot clinical trial that will be conducted around the world, including Europe and the United States.

Cardiac Concepts’ investors include a host of high -profile venture capital firms: Affinity Capital Management in Minneapolis, Polaris Venture Partners, Three Arch Partners, Versant Ventures, and Accuitive Medical Ventures. Dale Spencer, a prominent local medical device entrepreneur and investor, also serves on the board of directors.

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