Outset Medical, previously Home Dialysis Plus, said it raised $91 million in a new funding round, with $51 million in equity and $40 million in debt funding. Funds are slated to continue development and promotion of its Tablo all-in-one dialysis system.
The $51 million round of equity funding was led by new investor Fidelity Research and Management Co., joined by new investors Partner Fund Management LP, Perceptive Advisors and CRG, and prior backers Warburg Pincus and The Vertical Group, Outset Medical said. The $40 million in debt financing was led by CRG.
Last month, San Jose, Calif.-based Outset Medical said in a regulatory filing that it raised $60 million from 9 unnamed investors as it pursued funds to develop its Tablo system.
The Tablo system is designed to be an all-in-one dialysis machine, handling water purification and dialysate production, CEO Leslie Trigg told MassDevice.com. The system comes with a touch-screen interface that allows patients or providers to operate the platform.
“We have developed what is essentially a dialysis clinic on wheels. The traditional dialysis machine really just process the blood from patients, and that’s all they do. In a clinic, each clinic has to have very large water treatment rooms in the back to purify the water to make dialysate, which is the dialysis solution used during dialysis. And there’s a lot of infrastructure and labor involved in the traditional clinic,” Trigg told us. “What we’ve done with Tablo is taken an all-in-1 approach. So our system performs all of the key functions of a dialysis clinic. We provide water purification and preparation of dialysate in real time, so its like single-serving dialysis done on a real-time basis.”
Outset Medical is looking to create a “new dialysis treatment modality,” Trigg said, that would entail patients self-managing their treatment in clinics with the Tablo. Because the Tablo operates as a stand alone device, clinics would be able to avoid the cost in developing water-purifying infrastructure to set up dialysis clinics, Trigg added.
“Right now you have 2 options. The 1st is in-center care – going in 3 times a week for about 4 hours of dialysis treatment. That service model really hasn’t changed in 30 years,” Trigg said. “And then on the other end of the spectrum you have home dialysis. You go from either in-clinic, where you’re not allowed to touch anything or do anything, or home dialysis, where no one is there to assist you if assistance is needed. What we’re focused on is developing a 3rd modality of care that we call in-center self-care.”
Outset is also pursuing a home-use indication for the device, Trigg said, and has received FDA investigational device exemption approval for a pivotal trial of the Tablo.