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| Tablo dialysis device--Courtesy of Outset |
Outset Medical got its Tablo all-in-one diabetes dialysis device cleared by FDA in November. Now investors, including existing backers Warburg Pincus and The Vertical Group, are ponying up $59.6 million to back marketing the device to dialysis clinics as well as to complete a pivotal trial for home use.
The Tablo Hemodialysis System is cleared by FDA for use in dialysis clinics and hospitals, although the company plans specifically to target clinics initially with a pitch for potential cost-savings. The device is slated to start in a pivotal trial this year to support FDA clearance for use at home.
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| Outset CEO Leslie Trigg |
Warburg led a 2010 investment in Outset Medical, previously known as Home Dialysis Plus, that reached $9.5 million, according to an SEC filing. This latest round could reach as much as $65.6 million. Outset is headed by CEO Leslie Trigg, a former Warburg Pincus executive-in-residence who was EVP at drug-coated balloon company Lutonix, which was acquired by C.R. Bard ($BCR) for $325 million in December 2011.
The intention behind the Tablo is to improve the dialysis care experience for patients and to introduce cost-efficiencies for healthcare providers. And unlike many medical devices, the Tablo was designed as a consumer product--which means it aims to appeal visually with its sleek form factor and to be convenient. It's also supposed to reduce the time spent setting up and receiving hemodialysis--but the company doesn't offer any specific comparisons. In a clinic, dialysis is typically given three times weekly to a patient with each session requiring three to four hours.
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| Tablo's built-in touchscreen--Courtesy of Outset |
It's designed to be simple with a built-in touchscreen and wireless antenna that enables automatic data transmission. The company says the Tablo only requires 10 steps for setup. It can adjust dialysate temperature, calculate necessary fluid intake and even give clinic appointment reminders.
Ultimately, if the Tablo device enables more consistent diabetic patient care it could help prevent kidney failure and other complications. The National Kidney Foundation has found that frequent at-home hemodialysis can translate into less medication needed to control blood pressure, anemia and phosphorus to prevent bone disease; less neuropathy and restless leg syndrome; improved energy and sleep; reduced and shorter hospital stays; as well as a better quality and longer life.
- here is the SEC filing