California-based medtech company Outset Medical has netted $125m in a Series E equity financing round led by D1 Capital Partners.
Fidelity Management and Research Company, Partner Fund Management, Perceptive Advisors and funds advised by T. Rowe Price Associates also contributed towards the financing.
The money will be used to support the commercial expansion of Outset Medical’s Tablo Haemodialysis System across the US acute and chronic care markets. The machine is designed to reduce the cost of dialysis and improve access to the procedure in a variety of circumstances and locations.
“We believe in Outset’s vision for technology-driven care delivery improvement, and Tablo’s ability to disrupt the dialysis market,” said D1 Capital Partners founder Dan Sundheim. “With growing focus at the federal level on how to manage chronic kidney disease, which is increasingly prevalent, we believe Tablo is the only device with the potential to transform the delivery of dialysis.”
Over 550,000 patients in the US live with kidney failure and undergo dialysis several times a week to filter waste products and excess fluid from their bloodstream. This creates an annual cost of $75bn across the country.
Dialysis can be very life-limiting for patients, who must be hooked up to a machine for several hours a week.
Tablo is designed to free patients from some of this burden by making dialysis possible in a wider range of care settings. The machine only needs an electrical outlet and tap water to operate, allowing it to serve as a “dialysis clinic on wheels”, according to Outset.
This allows care providers to standardise their patient’s care to a single platform that can be used across a wider range of care settings. The system comes equipped with wireless data, sensor-based automation and an animated touchscreen to make the system as easy to use as possible.
Outset Medical CEO Leslie Trigg said: “Tablo’s unique, intuitive, all-in-one design offers healthcare systems, providers and patients a way to meaningfully improve the dialysis experience while also reducing costs. We thank our investors for their continued support and look forward to deploying this capital to significantly impact the future of dialysis care.”
Medical centres across the US have adopted Tablo for hospital and clinic dialysis and the US Department of Health and Human Services has awarded a contract for the use of Tablo in communities hit by natural disasters.