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Restore Medical Inc.

This article was originally published in Start Up

Executive Summary

Treating obstructive sleep apnea has proven elusive for a number of device companies. Now Restore Medical is betting on both commercial and clinical success with its recently launched Pillar system, a series of three palatal inserts that are implanted in the soft palate using a minimally invasive delivery tool. Pillar is intended as a minimally invasive, safe, low-cost single treatment alternative for mild to moderate OSA.

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Sleep Apnea: A High Growth Device Market Awakens

There's a reason why Philips paid $5 billion and a premium to buy Respironics. Sleep apnea is an enormous emerging opportunity: in the US, 38 million patients have the disease, and there are compelling clinical reasons to treat them. That's big business for device companies, if only they can access patients and establish new referral patterns in a highly fragmented market.

Sleep Apnea: A High Growth Device Market Awakens

There's a reason why Philips paid $5 billion and a premium to buy Respironics. Sleep apnea is an enormous emerging opportunity: in the US, 38 million patients have the disease, and there are compelling clinical reasons to treat them. That's big business for device companies, if only they can access patients and establish new referral patterns in a highly fragmented market.

Sleep Apnea: Medtech's High-Growth Sleeper

(Please see Start-Up, March 2008, for an expanded version of this article). Although the patient population is woefully undiagnosed, approximately 38 million in the US alone suffer from obstructive sleep apnea. There are a number of new technologies in development to improve on surgery and CPAP--traditional treatments for this silent killer--and device makers are casting about for wider markets in which to sell their goods. At its current rate of penetration, OSA will create close to a $3 billion worldwide market within two years.

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