T2 Biosystems, which is developing a diagnostic device that uses magnetic resonance technology to deliver nearly instant test results, said it raised a $40 million Series E round it plans to use for its T2Candida test for a common cause of hospital-acquired infections.
The Lexington, Mass.-based company said it also plans to use the proceeds for "to complete development of additional sepsis diagnostic panels and to advance and expand its research and development of other molecular, immunodiagnostic and hemostasis assays," according to a press release.
The T2Candida test is for the Candida fungus, estimated to cause some 100,000 cases of candidemia each year in the U.S., according to the release. T2 Biosystems said sepsis from candidemia has a 40% mortality rate that can be slashed to 11% "with early identification of the specific species."
"This financing demonstrates the enthusiastic support of our investors for our breakthrough T2MR technology that can rapidly and accurately detect virtually any target directly from complex clinical samples, such as whole blood," president & CEO John McDonough said in prepared remarks. "The new funding will support the clinical trial and launch of our innovative T2Candida test as well as fund the continued progress of our broad range of molecular, immunoassay and hemostasis products."
T2’s Series E was led by new investor Goldman Sachs, joined by existing backers Flagship Ventures, Polaris Partners, Aisling Capital, Flybridge Capital Partners, Physic Ventures, Arcus Ventures, Partners Healthcare, Camros Capital and WS Investments, according to the company.
In May 2010 T2 pulled down a $15 million Series C round, adding another $23 million in August 2011 in its Series D round. Including the most recent round (and a $10.8 million Series B round (.doc) in 2008 and a $1.4 million U.S. Energy Dept. grant (PDF) in 2010), the company has drummed up about $95.7 million to date.