Venture Funding

Outset Medical Lands $132 Million Series D

SAN JOSE — Outset Medical, a commercial-stage company developing technology for dialysis, has raised $132 million in a Series D equity financing. The round was led by new investor Mubadala Investment Company, the sovereign wealth fund of Abu Dhabi in the United Arab Emirates.

Existing investors Baxter Ventures, the venture capital arm of Baxter International, Fidelity Management and Research Company, Partner Fund Management LP, Perceptive Advisors, funds advised by T. Rowe Price Associates Inc., and Warburg Pincus also participated in the equity round.

The company will use the proceeds from the financing to increase production capabilities and accelerate commercial expansion of its Tablo Hemodialysis System in acute and chronic care markets in the United States. Designed to reduce the cost and complexity of dialysis, Tablo expands how, when, and where dialysis can be provided.

“Our investment in Outset Medical represents an exciting opportunity for Mubadala, as it is aligned with our goal of improving people’s lives while meeting a major global market need,” said Camilla Macapili Languille, Senior Vice President of Pharma & Medtech at Mubadala. “We selected Outset Medical as our first U.S. private medtech investment because of Tablo’s ability to significantly improve global dialysis care and address one of the biggest areas of worldwide healthcare spend with very disruptive and innovative technology.”

Dialysis is delivered to more than 500,000 U.S. patients several times per week to remove waste products and excess fluid from patients with kidney failure. Although more than 91 million dialysis treatments take place in the United States each year at an estimated annual cost of $65 billion, little meaningful technology or service model innovation has been introduced in decades.

Tablo was designed to transform this large, but stagnant, dialysis landscape. With real-time water purification and dialysis fluid production integrated in a single, compact system, Tablo functions like a dialysis clinic on wheels. Requiring just an electrical outlet and tap water to operate, Tablo frees providers from having to rely on expensive clinic infrastructure, enabling on-demand, cost-effective dialysis in a range of different use environments. Tablo was designed to look and feel like an intuitive consumer product, keeping end-user simplicity in mind. Wireless data, sensor-based automation, and an animated touchscreen aim to make Tablo easy to learn and easy to use for healthcare professionals and patients alike.

“Tablo offers patients and healthcare providers a new option for more flexible and convenient dialysis treatment, improving the dialysis experience while at the same time reducing overall dialysis spend,” said Leslie Trigg, Outset Medical’s Chief Executive Officer. “We are grateful to our investors for the opportunity to significantly impact the future of dialysis care.”