Magnolia Medical Technologies raised a $13.8 million Series B to ramp up the commercialization of its flagship blood-collection system. It is the only device on the market that eradicates false-positive blood cultures, which can lead to unnecessary treatment.
Blood cultures are used to diagnose septicemia, a potentially life-threatening consequence of bloodstream infection. But with an average of 1.2 million false-positive blood cultures taken each year, the U.S. healthcare system spends an excess of $4 billion annually on unnecessary treatment for false sepsis cases.
"In today's hospital environment, new technologies and products must significantly improve patient safety and outcomes while driving substantial cost savings," said Dr. Garheng Kong of HealthQuest Capital, which led the round, in the statement. "The commercial traction Magnolia Medical has demonstrated affirms that SteriPath delivers on both of these requirements. We look forward to working with Magnolia Medical's team to advance SteriPath's commercial success as well as continue to broaden the company's product and intellectual property portfolio, both of which are quite substantial at this stage of the company's development."
The SteriPath system is a vacuum-assisted blood collection system delivered in a sterile, single-use package. The self-contained system removes multiple opportunities for the sample to be contaminated, for example, during preparation, assembly or while puncturing the vein to take the sample.
In addition to accelerating its commercialization efforts, the funding will also be used to support Magnolia Medical’s ongoing development of devices to cut down on human errors that can lead to false-positive and false-negative test results.
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