NovaSom completes $35M equity financing led by Safeguard Scientifics

NovaSom, Inc., the market leader in technology-driven, payer-aligned cost-saving solutions for Obstructive Sleep Apnea (OSA) management, today announced it has closed $35 million in equity financing. Led by Safeguard Scientifics, Inc. (NYSE: SFE) with participation from existing investors including TPG Biotechnology II Fund and Quaker BioVentures, NovaSom will use the financing to fund growth, expand its leadership position in payer and provider markets, and develop additional innovations within the company's proprietary NovaSom® diagnostic medical device and cloud-based MediTrack® Patient Management Portals.

“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.”

"OSA is one of the most serious and under-diagnosed medical problems in our country," said Dr. Richard Hassett, CEO of NovaSom. "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 unique home service delivery model, combined with a pioneering cloud-based portal technology, connects NovaSom with physicians, therapy providers and payers to achieve alignment in patient preference, cost and quality objectives. Payers and consumers are driving the adoption of HST as the preferred solution for addressing the OSA epidemic. Responding to the voice of payers, NovaSom 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," stated Gerald Stone, CFO of NovaSom. "In addition, this financing enables us to accelerate growth to meet the needs of our rapidly growing physician and payer customer base. Our model empowers the primary care physician and consumer to achieve better cost and quality outcomes, consistent with the move to Accountable Care Organizations and the patient-centered medical home."

"Across the healthcare spectrum, the migration to personalized, at-home, technology-enabled services that reduce costs and improve quality outcomes is undeniable," said James A. Datin, Executive Vice President and Managing Director of the Life Sciences Group at Safeguard. "NovaSom has leveraged its market leadership position with an integrated medical management platform to enable aligned physicians and sleep therapy providers to bring an accountable sleep management solution to the payer markets. We are excited about partnering with the first, largest and most technologically advanced, FDA-approved Home Sleep Testing platform in the industry."

Datin will join NovaSom's board of directors. "With more than 25 years of experience in business development, sales and marketing in pharmaceutical, diagnostics, devices and software companies, Jim is an invaluable addition to our board. His expertise and strong relationships will augment our organization and drive shareholder value. We are excited to add this industry leader and visionary to our board," concluded Dr. Hassett.