Sleep disorder equipment company moves to Broomfield

BROOMFIELD – Sleep is not usually a topic for discussion during business hours. But it is at Embla, a company that just moved its global headquarters to Broomfield.

Embla, formerly Medcare and a subsidiary of an Iceland-based company Flaga Group, makes and sells sleep diagnostic equipment. The company just relocated to Broomfield from Buffalo, N.Y.

David Baker, named Embla’s president in April, said the move is part of a restructuring that will secure the company as the “leading provider of sleep diagnostic equipment in the world.”

Earlier this year, the company announced the name change as part of that restructuring and a “new focus” on customer service and support. According to the company’s Web site, the new focus is to be “closer to our customers,” with more efficiency and less cost.

Tom Clark, executive vice president of the Metro Denver Economic Development Corp., said that even though Embla’s “not a huge company,” about 100 employees, Colorado welcomes another world headquarters to the Denver area. “The whole medical device cluster pays well and is rapidly growing in the Denver area,” he said.

The company’s move to Colorado puts it closer to its largest customer base.

Kassandra Keller, director of marketing for Embla, says it was difficult for the company to know what its customers wanted when so much of the staff was located in Iceland.

Flaga is publicly held holding company, and its stock is traded on the Iceland Stock Exchange under the symbol FLG. In addition to Embla, it owns SleepTech, a provider of sleep disorders diagnostics and treatment services in the New York tri-state area. Flaga reported revenue of $7.3 million with a loss of $876,604 for first quarter 2006, with about $5.4 million of that revenue generated by Embla.

The company’s leadership liked that Broomfield was in the center of North America.

“The objective was to move our staff closer to our customers so we could be in a better position to support them. This means having more sales, customer service and technical support staff in North America,” Keller says. “Broomfield offered us a desirable location for our employees and visitors to our offices, a strong pool of qualified employees, and close proximity to Denver International Airport.”

Embla makes products used by doctors and researchers in hospitals and research facilities to diagnose patients with sleep disorders, commonly insomnia and sleep apnea. One of the most serious health issues today, sleep disorders are believed to affect one of every five individuals.

The company also provides consulting, educational and networking services to sleep centers and sleep professionals. Its products are used in over 60 countries throughout the world.

Keller says Embla wants more sufferers of sleep disorders to get help. This means providing not only the best solutions to carry out a sleep study, but also solutions that helps customers, medical professionals, operate their services more effectively. The sleep disorder market is dynamic and the company, according to Keller, is well positioned to develop the new technology and systems necessary to take advantage of the opportunities as they arise.

Embla announced the launch of XactTrace Universal belts that measures breathing during sleep. Keller says the company expects the belt will be welcomed by the sleep community. The belts contain sensors that relay information to technicians through Embla’s Rembrandt and Somnologica software platforms.

Embla’s software helps researchers measure airflow and lung volume during sleep. The need for sleep diagnostic equipment has increased in recent years at an annual rate of about 10 to 15 percent.

Keller says the business of sleep medicine is growing worldwide, and expected to continue to grow rapidly in the years ahead. Although the U.S. is the largest market, many European countries are growing quickly and, collectively, compare to the U.S. in size and growth. Beyond Europe, the sleep market is also growing in Asia. Globally Embla has strong distribution and direct sales networks in every significant market.

Internationally, awareness of the importance of diagnosing and treating sleep disorders is growing rapidly within the medical profession as well as the general public, she says.

The company reports that more and more medical professionals, businesses and entrepreneurs are launching sleep related services, both independent and in association with hospitals. Keller says that while the importance of nutrition and physical fitness has long been recognized, the vital role sleep plays in good health is only recently being acknowledged.

Sleep stats

_ Sleep disorders affect nearly 44 million Americans, with an additional 35 million reporting occasional problems, representing roughly 28 percent of the U.S. population.

_ Sleep disorders account for an estimated $16 billion in medical costs each year in the U.S.

_ Doctors have described more than 70 sleep disorders, most of which can be managed effectively once they are correctly diagnosed.

_ Prolonged sleep deprivation results in severe symptoms that interfere with work and social activities.

_ Untreated sleep disorders can lead to hypertension, stroke and cardiac failure.

_ Driver fatigue, often the result of disturbed sleep, is responsible for an estimated 100,000 motor vehicle accidents and 1,500 deaths each year in the U.S., according to the National Highway Traffic Safety Administration.
Source: Embla

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