SPO Medical Inc, a developer of biosensor and microprocessor technologies for use in portable monitoring devices, has signed a Memorandum of Understanding (MOU) with MetroSleep Inc, a US corporation that specializes in products to diagnose and treat sleep apnea through in-home testing. The MOU enables the integration of SPO Medical’s ASIC chip-set technology in a new MetroSleep product offering for the sleep-disordered breathing (SDB) monitoring market.
“The home testing market is an excellent opportunity for integration of our technology, enabling monitoring of those who suffer from undiagnosed sleep-apnea in the comfort of their home without the need for expensive and inconvenient sleep-laboratory testing,” said Michael Braunold, president and CEO of SPO Medical. “Sleep apnea affects more than 40 million people in the United States alone of which 85% are currently undiagnosed, making it the most common sleep disorder. Our partnership with MetroSleep will help bring a cost-effective solution to this vast market."
The terms of the MOU include an advance licensing fee and a subsequent royalty payment to SPO once the products are commercially available. In addition, MetroSleep will remunerate SPO on a usage-fee basis via SDB devices that are deployed by MetroSleep in the market. The MOU provides that the parties shall enter into legally binding agreements upon MetroSleep receiving required funding for launch of the products.
"We decided to partner with SPO as our technology provider for oximetry measurements since this constitutes a vital part of our multi-channel home diagnostic system,” said Haim Zitman, president of MetroSleep. “We are uniquely poised to capitalize on the fast-growing sleep apnea testing and therapy market that is expected to reach more than $4 billion by 2012. MetroSleep together with SPO’s technology could play a leading role in the emerging home-test market especially since reimbursements are now permissible for this application; we will now be able to offer individuals a more convenient, cost-effective sleep test and therapy experience."