SAN JOSE –Outset Medical, a company developing technology for dialysis, has secured $76.5 million in Series C equity funding. A new investor, funds advised by T. Rowe Price Associates, Inc., led the round, which also included participation from existing investors Fidelity Management & Research Company, Partner Fund Management LP, Warburg Pincus, Perceptive Advisors and The Vertical Group.
The company has raised more than $166 million to date.
Outset’s technology, the Tablo Hemodialysis System, is the first novel dialysis system to reach the U.S. market in more than 15 years. The system can be used flexibly across a range of clinical settings from dialysis clinics to hospitals and skilled nursing facilities. The company will use proceeds from the financing to expand the commercial introduction of the Tablo System in acute and chronic care markets in the United States.
Dialysis is delivered to over a half-million U.S. patients several times per week to remove waste products and excess fluid from patients with kidney failure. Although more than 78 million dialysis treatments take place in the U.S. each year at an estimated annual cost of $42 billion, little technology or service model innovation has been introduced in the last several decades.
Using sensor-based automation, wireless data transmission and an easy touchscreen interface, Tablo was created to feel and function more like a consumer product than a medical device. In the dialysis clinic setting, Tablo’s simplicity and small size allows for a new “self-serve” dialysis model in which patients can set up and monitor their own treatment independently without relying on clinic staff. The self-serve option empowers patients to take more control and ownership of their treatment, and can help create cost efficiencies for dialysis providers.
Additionally, Tablo eliminates the need for expensive infrastructure. Tablo connects directly to regular tap water, purifies it on demand, and generates streaming dialysis fluid in real-time, while the patient is dialyzing. Because centralized water processing equipment is not required, Tablo expands the settings in which dialysis can be efficiently delivered, and can reduce costs in settings such as hospitals and extended care facilities.
“We are very grateful to have outstanding support from T. Rowe Price and from our returning investors,” said Leslie Trigg, Outset Medical’s CEO. “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. 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.”