Seattle-based Magnolia Medical Technologies said today it raised $13.8 million in a Series B round of financing to support the commercialization of its SteriPath blood collection system.
Magnolia produces the SteriPath vacuum-assisted blood collection system designed to divert and sequester contaminants from the initial blood sample specimen, according to the company’s website.
The SteriPath unit comes in 3 different configurations and is compatible with standard blood collection tubes and culture bottles made by Becton Dickinson & Co. (NYSE:BDX) and bioMerieux, according to Magnolia’s website. The systems are sealed in a single-use package which serves as a portable sterile field during blood culturing procedures.
“Given the significant clinical impact that we’ve demonstrated with SteriPath, timing is perfect to partner with Dr. Kong and the HealthQuest team to leverage collective expertise as we continue to rapidly build our organization and drive ‘standard of care’ adoption for SteriPath. We are fortunate to have the continued guidance and counsel of an exceptional group of world-renowned clinical experts as well as strategic advisors and are pleased to add HealthQuest Capital to the team as we drive forward on an exciting growth trajectory,” CEO Greg Bullington said in a press release.
Funding is slated to aid in accelerated commercialization and to support the development of future devices designed to “eliminate human errors that cause false positive and false negative clinical laboratory test results,” the company said.
The round was led by HealthQuest Capital, and as part of the financing HealthQuest Capital managing partner Dr. Garheng Kong is slated to join Magnolia’s board of directors.
“In today’s hospital environment, new technologies and products must significantly improve patient safety and outcomes while driving substantial cost savings. The commercial traction Magnolia Medical has demonstrated affirms that SteriPath delivers on both of these requirements. We look forward to working with Magnolia Medical’s team to advance SteriPath’s commercial success as well as continue to broaden the company’s product and intellectual property portfolio, both of which are quite substantial at this stage of the company’s development,” Dr. Kong said in a prepared statement.
In March, Magnolia Medical brought in $1.4 million in a new round of debt financing and looks to bring in another $1.6 million before closing the round, according to an SEC filing posted last week.
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