September 30, 2014 / 6:55 AM / 5 years ago

Itamar Medical sees growth in sleep disorder, heart markets

* Third quarter results to reflect three new sales deals

* Company raised $16.3 mln to boost R&D, commercialisation

By Ari Rabinovitch

CAESAREA, Israel, Sept 30 (Reuters) - Israel’s Itamar Medical expects to end three years of sluggish growth after signing three new sales agreements in the United States and Japan, chief executive Gilad Glick said.

The company, which makes devices that test for sleep and cardiovascular problems with a simple fingertip sensor, is also benefiting from a growing awareness of sleep disorders, which is a $3.5 billion market in the United States, Glick said.

“There is a lot of strategy on our part, but also a lot of really good timing, almost on all fronts,” Glick, who joined the company as CEO last July, said in an interview with Reuters.

The company’s devices gauge the health of nerves and blood vessels in the fingers, which reflects performance in the rest of the body. They diagnose breathing disturbances overnight and can raise a red flag for risks of heart disease, he said.

The sleep monitor is worn at home on the wrist with a small clamp extending to one finger. The larger cardiovascular system must be used in a clinic and in January it received for the first time a reimbursement code for U.S. insurers.

Itamar also boosted its cash reserves over the past half year, raising $16.3 million from Israel’s largest institutional investors, to fund research, development and commercialisation.

Glick would not give a growth forecast, but he said the majority of his personal compensation would only be paid if Itamar grows at least 40 percent each year.

“I expect to sign two to three new sales deals each year,” he said. “Another goal is to leverage our technology to produce new applications in the near future.”

On Tuesday Itamar unveiled a pediatric version of its home sleep test, the first of its kind for infants and toddlers.

For the past three years the device maker’s revenue hovered around $3.5 million a quarter, Glick said, though it was on the rise in the second quarter, growing 16 percent to $4.1 million. Its adjusted loss narrowed to $1.6 million from $1.8 million.

The third quarter, he said, will be the first to reflect all the new deals the company signed with U.S.-based Medtronic Inc , a Japanese unit of Philips and Nihon Kohden , one of Japan’s largest medical device manufacturers.

Glick also held out the possibility of a dual listing.

“We are considering a flotation on Nasdaq in the next few years,” he said. (Editing by Tova Cohen)

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