Magnolia Medical Technologies said today that it closed a $20 million Series C financing round slated to help grow the company’s infrastructure and market initiatives to meet demand for its Steripath Gen2 initial specimen diversion device.
The next-generation device, launched last August, features mechanical initial specimen diversion and improved usability based on input from end users, the Seattle-based company said.
Financing in the round was led by RTW Investments and joined by existing investors HealthQuest Capital, SightLine Partners and Canepa Healthcare. As part of the funding round, RTW Investments partner Dr. Naveen Yalamanchi will join the company’s board of directors as an observer, Magnolia said.
“RTW is committed to supporting innovative healthcare companies that both improve patients’ lives and enable cost-effective delivery of care. Magnolia is uniquely positioned to deliver on both of these requirements with Steripath’s demonstrated clinical performance and financially-backed guarantee. Accurate sepsis diagnosis is a critical priority for every acute care hospital, so we’re excited to partner with Magnolia as the company accelerates adoption of this new standard of care,” Yalamanchi said in a press release.
Funds will also be used to advance the company’s blood and bodily fluid collection and contamination prevention devices, Magnolia Medical added.
“Our mission as a company is to eradicate inaccurate laboratory test results that lead to harmful patient mistreatments and significant avoidable costs. We have made very strong progress in establishing a new standard of care for sepsis testing accuracy and look forward to repeating our proven process with other critical, yet frequently inaccurate, laboratory tests. We are delighted to partner with RTW as we accelerate expansion of the Steripath platform and advance efforts with policymakers to change national blood culture guidelines and contamination benchmarks to improve patient safety and quality of care,” CEO Greg Bullington said in a prepared statement.
