Magnolia Medical Technologies, Seattle, has received an additional investment funding of $7.25 million, bringing total company financing to date to $30 million. Magnolia Medical is the developer of SteriPath, a blood collection system developed to eliminate false positive blood culture test results from patients with suspected sepsis.
Several institutional investors participated in the financing, including the Canepa Advanced Healthcare Fund. In conjunction with the financing, Paul Enever, PhD, managing director with Canepa Healthcare, has joined the company’s board of directors.
The SteriPath blood collection system significantly reduces false positive results by sequestering contaminants and creating access for sterile blood flow into the culture test bottles. The single-use system has been proven in multiple clinical settings to reduce false positive blood cultures by more than 90%, helping to lessen the unnecessary use of antibiotics and associated patient risks and complications.
“We are proud to support the valuable contribution to better medical care represented by SteriPath, which addresses a widely recognized, unmet need for better blood collection technology,” says Enever. “The combination of the clinical as well as economic value created by SteriPath is a win for patients, hospitals, and public health alike.”
Greg Bullington, cofounder and CEO of Magnolia Medical, says the new funding will boost the company’s efforts to make its technology the new standard of care.
“Our clinical trial results have consistently demonstrated 10 times better performance with SteriPath compared to the current standard of care,” says Bullington. “The impact we’ve had at major medical institutions demonstrates that our technology improves patient care, reduces inappropriate utilization of powerful antibiotics and helps hospitals realize substantial net savings. Blood culture contamination is a measureable, tangible problem that hospitals can now fix using our SteriPath system.”
Proceeds from this financing supplement a previously announced 2016 investment of $13.8 million led by HealthQuest Capital and will be used to accelerate commercial adoption of SteriPath, as well as advance the company’s research and development pipeline of devices to improve the consistency, accuracy, and predictability of critical laboratory tests.
For more information, visit Magnolia Medical Technologies.