The funding will be used by the company to further advance the commercialisation of Steripath initial specimen diversion device platform, which is already used by several US hospitals and healthcare systems to address the issue of blood culture contamination
Steripath is already used by several US hospitals and healthcare systems to address the issue of the blood culture contamination. (Credit: Annett_Klingner from Pixabay)
Magnolia Medical Technologies has secured a $46m growth equity financing for its Steripath initial specimen diversion device platform.
Co-led by RTW Investments and Sectoral Asset Management, the financing round saw participation from new investor Janus Henderson Investors and existing investors such as HealthQuest Capital, Evidity Health Capital, and SightLine Partners.
The funding will be used by the company to further advance the commercialisation of the Steripath initial specimen diversion device platform, in addition to the fast tracking of new innovations in sepsis diagnostic accuracy and timeliness.
Magnolia Medical CEO and co-founder Greg Bullington said: “The clinical success we continue to achieve as we rapidly expand our hospital customer base is remarkable.
“Given the criticality of sepsis testing accuracy to enable appropriate patient treatment decisions, our goal remains to ensure every patient undergoing sepsis testing has access to our Steripath technology to dramatically improve the accuracy of the results.”
The Steripath Micro low-volume initial specimen diversion device is FDA-cleared to reduce blood culture contamination for sepsis testing.
Steripath is already used by several US hospitals and healthcare systems to address the issue of the blood culture contamination, which may result in sepsis misdiagnosis, harmful antibiotic treatment, false-positive central line-associated blood stream infections (CLABSIs) and wasted healthcare resources.
According to the company, Steripath has shown clinical and cost-effectiveness in 20 studies, as well as reported sustained results of zero or near-zero blood culture contamination rates.
Jefferies acted as an advisor to Magnolia Medical in connection with the funding raising transaction.
In July 2020, the company introduced Steripath Gen2, which is an all-in-one solution to minimise false-positive blood culture results, features an integrated syringe configuration for use on difficult venous access patients.