Magnolia Medical Technologies has secured $20m in Series C financing round to expand its Steripath platform and advance development of new products.
Image: Steripath Gen2 initial specimen diversion device. Photo: courtesy of PRNewswire / Magnolia Medical Technologies.
Magnolia will use the funding to expand the clinical adoption of Steripath Gen2 initial specimen diversion device (ISDD).
Furthermore, the financing will be used to advance the company’s portfolio of innovative blood and bodily fluid collection and contamination prevention devices to improve the accuracy, consistency and predictability of critical diagnostic laboratory tests.
RTW Investments has lead series C financing round, while participants include existing institutional investors such as HealthQuest Capital, SightLine Partners and Canepa Healthcare.
RTW Investments partners Dr Naveen Yalamanchi will join board of directors as an observer.
Dr Yalamanchi said: “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.”
Steripath Gen2 ISDD has been developed to minimize the problem of blood culture contamination.
Steripath will help hospitals to maintain sepsis testing accuracy, reduce unnecessary antibiotic treatment and prevent patient harm.
It will enable to reduce the risk of Clostridium difficile infections, multi-drug resistant organisms and other antibiotic-related complications, length of stay and associated healthcare-acquired infections, and unnecessary reporting of false positive central line-associated bloodstream infections.
Magnolia will also develop and commercialize advanced products to enhance the accuracy and consistency of other crucial in vitro diagnostic (IVD) tests.
Magnolia Medical CEO Greg Bullington said: “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.”
Magnolia Medical is engaged in the development, manufacturing and marketing of advanced blood and bodily fluid collection device to improve accuracy, consistency and predictability of critical IVD laboratory tests.
The company has over 60 issued method, apparatus and design patents, as well as more than 50 additional patent applications pending.