ImThera Medical, Inc., a San Diego, California-based early-stage company developing a novel, implantable neurostimulation device for the treatment of obstructive sleep apnea (OSA), has received an initial investment of $4m from Cyberonics, Inc. (NASDAQ: CYBX), a global leader in medical devices for the treatment and management of epilepsy.
The investment can total $12m subject to the achievement of regulatory and clinical milestones. Cyberonics becomes a a minority shareholder and will have a seat on the company’s board of directors. ImThera will also raise up to $4m from its private investors, for a total Series C round of up to $16m.
The company has developed a neurostimulation medical device which delivers muscle tone to key tongue muscles during sleep, opening the upper airway and substantially reducing or eliminating OSA events. Led by Chairman, President and CEO Marcelo Lima, ImThera is currently pursuing CE Mark regulatory approval in the European Union and expects to initiate a pivotal clinical trial in the U.S. in the near future.