A Medical Device Daily

Sleep Solutions (SSI; Pasadena, Maryland) reported that it has secured $20.5 million in additional venture funding.

The investment was led by the TPG Biotechnology II fund with participation from existing investors, including MedVenture Associates, Dr. Thomas Fogarty/Emergent Ventures, and Lava Ventures.

SSI is developing technology-enhanced services for direct-to-patient diagnosis, therapy and compliance of sleep-disordered breathing, including obstructive sleep apnea (OSA).

“OSA is one of the most serious and under-diagnosed medical problems in our country, and the current approach of overnight sleep center studies is both costly and limited in its capacity to serve large numbers of patients,” said D. Keith Grossman, managing director of TPG Biotech. “The company’s proprietary OSA detection technology and unique home service delivery model, combined with existing strong support from private insurers and now Medicare, uniquely position SSI for an aggressive nationwide launch over the coming months and years.”

SSI said that with only 15%-20% of the estimated 40 million OSA patients in the U.S. identified or diagnosed, the OSA diagnostic testing market is projected to exceed $3 billion in 2008 and expected to grow 20%-30% annually for the next five years.

In December, CMS issued a draft National Coverage Decision approving reimbursement for in-home diagnostic testing services for OSA patients. The final policy is to be posted in mid-March.

The company said the additional investment will be used to build a national sales and marketing capability, expand facilities, and continue driving company development of new applications for its NovaSom QSG diagnostic medical device and MediTrack Patient Management System.

Grossman and Ned Brown, also a managing director of TPG Biotech, have joined the company’s board, with Grossman to serve as chairman.

Health Care REIT (Toledo, Ohio) said it will offer, subject to market and other conditions, 3 million shares of its common stock and that it will grant the underwriters a 30-day option to purchase up to another 450,000 shares to cover any over-allotments.

The shares of common stock will be registered under the company’s existing SEC shelf registration.

The company said it will use the net proceeds to acquire additional properties. Pending that use, the proceeds will primarily be used to repay the company’s unsecured line of credit borrowings.

The joint bookrunning managers for the offering are Deutsche Bank Securities and UBS Investment Bank.