Magnolia Medical Technologies, developer of the SteriPath® blood collection system and leader in improving the quality and accuracy of in-vitro diagnostic test results, announced the closing of the company’s $13.8 million Series B financing led by HealthQuest Capital. In conjunction with the financing, Garheng Kong, M.D., Ph.D., founder and managing partner of HealthQuest Capital, will join the company’s board.
Proceeds from the financing will be used to accelerate commercialization of Magnolia Medical’s SteriPath blood collection system. Funding will also support on-going development of the company’s planned roadmap of devices designed to eliminate human errors that cause false positive and false negative clinical laboratory test results.
SteriPath is the only commercially available device on the market designed to eradicate false positive blood cultures, the ‘standard of care’ blood test used to diagnose sepsis, a potentially life-threatening complication of a bloodstream infection. Sepsis claims over 200,000 lives in the United States each year, and is among the top five leading causes of death.
In real-world clinical environments, at a broad range of Integrated Delivery Networks (IDNs), managed care organizations and government-operated hospitals, SteriPath has reduced false positive results by an average of 93 percent. These improvements in blood culture accuracy reduce unnecessary antibiotic treatments and the length of patient hospital stays, delivering strong clinical and economic outcomes for healthcare organizations.