Magnolia Medical Technologies, Inc. has recently announced a Series C financing round of $20 million for scaling the infrastructure as well as market initiatives of the company. Apparently, these efforts from the company signify an attempt to meet the fast growing demand for its Steripath® Initial Specimen Diversion Device® (ISDD®) Gen2.
A press release from Magnolia Medical cited that the funding would also enhance its’s portfolio of innovative blood and bodily fluid collection and contamination prevention devices for delivering notable improvements in the predictability, consistency and accuracy of critical diagnostic laboratory tests.
RTW Investments had evidently led the financing round with participation from existing institutional investors Canepa Healthcare, SightLine Partners and HealthQuest Capital. Partner at RTW Investments, Naveen Yalamanchi M.D., will join the Board of Directors of Magnolia as an observer.
Greg Bullington, Chief Executive of Magnolia Medical, mentioned that the mission of the company is eradicating inaccurate laboratory test results which lead to patient mistreatments and high avoidable costs. The company has progressed considerably in establishing a new standard for sepsis testing accuracy and looks forward to repeating its proven process with various other critical laboratory tests.
Bullington further said that with RTW as a partner, the company would speed up expansion of its Steripath® platform, as well as advance efforts with policymakers for changing national benchmarks of blood culture guidelines and contamination for improving the quality of patient care and safety, he stated.
Further from the reports, an inventor of both the technology and technique for initial specimen diversion blood culture collection, the company would be using the fund for supporting Steripath Gen2’s accelerated clinical adoption, while delivering continuous innovation towards the Steripath product family to address the unmet market needs.
Purportedly, Magnolia Medical would also be developing and commercializing innovative products which would improve the consistency and accuracy of other crucial in vitro diagnostic (IVD) tests, to leverage on an extensive intellectual property portfolio the company has developed.