Apnex Medical Inc.

Full article preview from Start Up - February/March, 2010

Apnex Medical is developing a tiny device that it thinks could become an enormous game changer in the bid to better treat obstructive sleep apnea. The technology is similar to a pacemaker in both size and concept. But instead of the heart, the device stimulates the musculature of the upper airway at the base of the tongue - the genioglossus - via the hypoglossal nerve. In obstructive sleep apnea, the muscle doesn't always activate sufficiently, which can lead to a collapsed airway.

Apnex Medical Inc.

Full article preview from Start Up - February/March, 2010

Apnex Medical Inc. is developing a device as tiny as a pack of gum that could become an enormous game changer in the bid to better treat obstructive sleep apnea, or OSA.

As many as 18 million people in the US alone suffer from OSA, according to the American Association for Respiratory Care, and the World Health Organization believes as many as 100 million people globally endure the condition.

Apnex wants to become a viable player in the market and is testing its device, known as the Hypoglossal Nerve Stimulation ( HGNS) system, in both US- and Australia-based clinical trials. Company president and CEO Robert Atkinson sees the HGNS system as offering a novel alternative to the most common apnea treatment – continuous positive airway pressure, or CPAP, machines. The often-noisy CPAP option delivers compressed air to a patient through a mask covering part of the face while the patient sleeps, keeping the airway open. Atkinson says many patients have trouble staying with the machines, and ultimately eschew further treatment. And that is where Atkinson sees his marketing sweet spot.

"What we are targeting is not people who have a CPAP machine and are happy, but people who have tried and cannot comply," Atkinson says. Reaching those people is important, he says, because a large percentage of OSA patients either avoid further treatment or remain undiagnosed. The condition can lead to an increased likelihood of heart attack, stroke, hypertension, motor vehicle accidents and death.

Apnex Medical is the second company to spin out of the medical device incubator Prospex Medical Inc., which Atkinson, Michael Berman and Chad Kugler founded in 2005. The St. Paul, MN-based company's HGNS product is based on a fundamental concept invented more than 20 years ago, whose patent has since expired. Medtronic Inc. developed a similar device and sponsored a clinical trial about a decade ago, but dropped the project not long after. Another start-up – MN-based Inspire Medical Systems Inc., spun out of Medtronic Inc. in 2007 – is pursuing development of its own version.

Investor interest has been solid, with the company raising $30 million in venture capital over two rounds, including a $14 million funding round from existing investors in December 2009. Atkinson says he sees the funding as a major validation of how far Apnex has already come.

"It is a recognition from our investors … that we've built quite a bit of value over the last two years," he says.

Mark Hollmer

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Companies mentioned in this article:

Alaxo GMBH

Apnex Medical Inc.

Cyberonics Inc.

ImThera Medical Inc.

Inspire Medical Systems Inc.

Medtronic Inc.

Restore Medical Inc.

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No publication reviews leading edge companies and technology better than START-UP. Each issue of START-UP profiles the most important new product companies, identifies the hottest technology areas, reviews funds flowing into private companies and investment trends, and reports on university tech transfer licensing. Industries covered: pharmaceuticals, biotechnology, medical equipment & devices, and in vitro diagnostics.