ProSomnus receives $38M investment to grow in alternative sleep market

SAN FRANCISCO – ProSomnus has raised $38 million through a strategic investment from Catalio Capital Management to accelerate the expansion of its sleep health platform, according to a report from MassDevice.com.  

ProSomnus develops non-CPAP obstructive sleep apnea (OSA) therapy offerings. With the investment, it plans to advance the development of next-generation remote patient monitoring and proprietary sleep diagnostic devices. It hopes to meet the rising demand for patient-preferred OSA therapies, with alternatives like its intraoral medical devices, which precisely track the treatment plan and anatomy of each patient.  

The FDA-cleared, non-invasive mouthguard-like devices have the backing of a “growing body of clinical investigations,” ProSomnus says.  

“Catalio’s investment affirms our mission to address the global public health burden of obstructive sleep apnea with precision, datadriven medical solutions that create meaningful value loops for patients, clinicians, and payers,” Len Liptak, CEO of ProSomnus, said. “Demand for effective, economical, and patientpreferred therapies continues to build. This partnership enables ProSomnus to expand access to care while advancing and scientifically validating our next generation sensorenabled medical devices. We appreciate Catalio’s partnership and look forward to accelerating the worldwide adoption of smart sleep medicine.” 

ProSomnus in September 2023 completed a $10 million convertible preferred equity offering led by existing investors Spring Mountain Capital and Cetus Capital.  

Less than a year later, in May 2024, the company filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware, listing more than $26.3 million in assets and $52.89 million in debts.  

“The voluntary restructuring announced today will enable us to move ahead as a stronger company,” said Liptak at that time. “Reestablishing a healthy financial foundation for our company, with the support of our lenders, we expect to leave the process with more cash, less debt, less expense, and more time to focus on devices, customers and patients.”