Magnolia Medical Technologies, Inc., inventors of Steripath®, the only FDA 510(k)-cleared device platform indicated to reduce blood culture contamination for sepsis testing,1 today announced a $46 million growth equity financing co-led by RTW Investments, LP (“RTW”) and Sectoral Asset Management with significant participation by new investor Janus Henderson Investors. All existing major investors including HealthQuest Capital, Evidity Health Capital, and SightLine Partners also participated in the financing.
Concurrent with the financing, Marc-Andre Marcotte, CFA, Partner at Sectoral Asset Management and Ovid Amadi, PhD, Senior Analyst at RTW have joined the Company’s Board of Directors.
“The closing of this financing comes on the heels of our record-setting new account acquisition and top-line sales growth in Q4 and 2021,” said Greg Bullington, CEO and co-founder of Magnolia Medical. “The clinical success we continue to achieve as we rapidly expand our hospital customer base is remarkable. Given the criticality of sepsis testing accuracy to enable appropriate patient treatment decisions, our goal remains to ensure every patient undergoing sepsis testing has access to our Steripath technology to dramatically improve the accuracy of the results.”
“Additionally, this funding further enables us to fast-track new innovations, leveraging our extensive intellectual property portfolio, to advance Magnolia Medical’s overall mission to eliminate the misdiagnosis of sepsis,” Bullington added.
Steripath® has been adopted in hundreds of U.S. hospitals and healthcare systems to address the problem of blood culture contamination, which can lead to sepsis misdiagnosis, unnecessary, prolonged, and harmful antibiotic treatment, false-positive central line-associated blood stream infections (CLABSIs), and wasted healthcare resources.
“RTW remains committed to supporting Magnolia Medical and its management team in its mission to establish a new standard-of-care for sepsis testing accuracy to improve patient safety and outcomes, and enable cost-effective delivery of care,” said Ovid Amadi. “As Board observers and advisors for the past three years, we have seen first-hand the team’s strong leadership and execution resulting in accelerated market adoption of its platform technology, Steripath, and forward advancement of new innovative technologies.”
