SomnoMed Appoints Joint CEOs

The board of directors of SomnoMed has appointed Amrita Blickstead and Karen Borg as joint chief executive officers (CEOs) and executive directors of SomnoMed, a company specializing in oral appliance treatment solutions for sleep-related breathing disorders and obstructive sleep apnea.

They will succeed Neil Verdal-Austin, who advised the board of his resignation after serving the company for 15 years, including 10 years as its chief financial officer and five years as CEO.

Blickstead and Borg have served as non-executive directors of SomnoMed since 2020, bringing current and comprehensive knowledge of the company, as well as a breadth of skills and experience, according to a release from SomnoMed.

Borg is a leader with a career in the global medical devices sector. She has led major businesses within Johnson & Johnson Medical and ResMed, and has experience working with health and industry organizations for both state and federal governments. Most recently, she was the CEO of Catholic Healthcare, an aged care provider in Australia. Borg’s core capability is in sales and marketing of medical devices, with a strong track record of accelerating growth internationally in the United States, Europe, and APAC.

Blickstead brings monetization expertise to the company through her track record of driving operational efficiencies and revenue growth. As the former chief operating and marketing officer at eBay Australia, she led many critical functions, including sales, marketing, pricing, strategy, and operations. Her career began in medical devices as a biomedical engineer at Cochlear and Ventracor. She holds an MBA from Harvard Business School.

The co-CEO leadership structure enables a wealth of experience, complementary skill sets, and increased focus across different geographies and functions, which will help SomnoMed improve its growth trajectory, according to a release from the company.

Borg will spend time in both the United States and Europe, responsible for global sales revenue across all regions. Blickstead will be based in Sydney and will oversee corporate operations, global marketing, and product development.

“I am confident that both Karen and Amrita will contribute greatly to the future global development of our company,” says Guy Russo, chairman of SomnoMed, in a release. “The board is greatly appreciative of Mr. Verdal-Austin’s leadership of SomnoMed and his dedication over the past 15 years. During his tenure as CEO, SomnoMed treated over 850,000 patients across 28 countries. Mr. Verdal-Austin was a pioneer in product innovation, laying the pathway for our next-generation RestAssure technology and digital manufacturing processes.”

SomnoMed’s Quarterly Results

SomnoMed also provided its quarterly activities report for the period ending December 31, 2023, stating that the total number of patients treated worldwide now exceeds 860,000.

The company’s core business was interrupted during Q2 FY24 due to unplanned milling machine downtime, which reduced the growth rate from 15% in Q1 to 11% in Q2. All issues have now been resolved, and manufacturing capacity has returned to 100%, according to the company.

North American revenue in Q2 FY24 increased by 7.7% (+6.6% in constant currency) compared to the previous period. The results were impacted by delayed delivery of finished goods caused by the milling machine downtime, with some planned sales lost to competitors during the final quarter of the insurance year.

Sales of the SomnoDent Avant continue to be affected by the pending Medicare reimbursement coding. A new submission was made to PDAC during the quarter, including additional requested information.

SomnoMed remains confident that patients and physicians view oral appliance therapy as an alternative treatment for mild and moderate obstructive sleep apnea.

As previously announced in Q1 FY24, the FDA filing for the Rest Assure technology was completed and submitted in October 2023. The review is ongoing, and an initial response from the FDA is expected during Q3.

Once FDA approval is obtained, commercialization of Rest Assure in the United States will begin. In Europe, due to different regulatory classifications, sales are expected to start in early Q4 FY24 once manufacturing quality processes are finalized.