Medtech Company Outset Medical Secures $125 Million

By Noah Long ● February 5, 2020
  • Outset Medical, a company delivering the first-of-its-kind technology for the global dialysis market, announced it raised $125 million

Outset Medical — a leading medtech innovator that is delivering the first-of-its-kind technology into the growing global dialysis market — announced a $125 million Series E round of funding led by D1 Capital Partners. Fidelity Management and Research Company, Partner Fund Management, Perceptive Advisors, and funds advised by T. Rowe Price Associates also are participating in this round.

This funding will be used to support the commercial expansion of Outset Medical’s Tablo Hemodialysis System across the acute and chronic care markets in the US. And the company’s technology was designed to reduce the cost and complexity of dialysis. And Tablo expands how, when, and where dialysis can be provided.

“Tablo’s unique, intuitive, all-in-one design offers healthcare systems, providers and patients a way to meaningfully improve the dialysis experience while also reducing costs,” said Outset Medical Chief Executive Officer Leslie Trigg. “We thank our investors for their continued support and look forward to deploying this capital to significantly impact the future of dialysis care.”

Dialysis is delivered to over 550,000 U.S. patients several times per week to remove waste products and excess fluid from patients with kidney failure. Even though more than 85 million dialysis treatments take place in the US each year at an estimated annual cost of about $75 billion, little meaningful technology or service model innovation has been introduced in decades.

“We believe in Outset’s vision for technology-driven care delivery improvement, and Tablo’s ability to disrupt the dialysis market,” added Dan Sundheim, Founder of D1 Capital Partners. “With growing focus at the federal level on how to manage Chronic Kidney Disease, which is increasingly prevalent, we believe Tablo is the only device with the potential to transform the delivery of dialysis.”