Outset Medical, whose mission is to update dialysis care, raised $76.5 million in its Series C round. The funds will go toward scaling up the commercial launch of its all-in-one dialysis device.
With the Tablo Hemodialysis System, Outset aims to simplify and improve dialysis care for patients, caregivers and physicians. More than 661,000 Americans have kidney failure; about 468,000 of them are on dialysis, according to the National Institute of Diabetes and Digestive and Kidney Diseases.
The Tablo device connects directly to tap water, purifies it and makes dialysis fluid as the patient is dialyzing. This eliminates the need for centralized water processing equipment, making Tablo suitable for use in various settings and potentially cutting costs for hospitals and extended-care facilities, Outset said in a statement.
With sensor-based automation, wireless data transmission and a touchscreen interface, the device allows for “self-serve” dialysis, where patients may set up and monitor their treatment without depending on staff.
“Physicians and patients are excited about our technology, which meaningfully upgrades the patient’s treatment experience and offers a new avenue for cost reduction in a historically labor-intensive, infrastructure-intensive area of healthcare,” said CEO Leslie Trigg in the statement. “This funding will provide the resources needed to scale our launch and brings us a step closer to making a significant and lasting impact on dialysis care.”
While Tablo is FDA-cleared for use in acute and chronic care settings, such as hospitals and dialysis clinics, the company is looking to expand its label to include home use. To that end, Outset is sponsoring a 40-patient investigational device exemption (IDE) trial for the device. The National Kidney Foundation has found that patients undergoing more frequent, at-home dialysis take less medication to control their blood pressure, experience less restless leg syndrome and have more energy, among other benefits.
Funds advised by T. Rowe Price Associates led the round, while existing investors Warburg Pincus, Fidelity Management & Research Company, Partner Fund Management, Perceptive Advisors and The Vertical Group also participated.