NEW YORK ─ Babson Diagnostics on Tuesday announced the closing of $31 million in an oversubscribed Series B financing round.
The Austin, Texas-based firm said it intends to use the funding to expand its laboratory and ecosystem infrastructure, complete the development of its blood testing product, and grow its sales and marketing teams.
Emerald Development Managers led the Series B financing round, and existing investors Siemens Healthineers, Prism Ventures, and Lago Consulting also participated. Babson also said New York-based Emerald Development Managers' founder and chairman, Neil Cohen, will join Babson's board of directors.
Incubated by Erlangen, Germany-based Siemens Healthineers, Babson is validating a capillary-blood collection device as an alternate option to traditional venipuncture, which it developed in collaboration with Franklin Lakes, New Jersey-based Becton Dickinson.
"The additional capital will enable us to further scale the company and our disruptive solutions for regulatory approval, commercial launch, and nationwide rollout," Babson CEO David Stein said in a statement.
The company said it is leveraging innovations in collection, sample handling, and analysis to enable the use of small capillary samples for routine blood-based diagnostic testing. Its blood collection technology uses one-tenth the volume normally collected with venipuncture without sacrificing quality, accuracy, or cost, the firm said.
Further, Babson is working with retail pharmacies to validate its technology and conducting clinical studies intended for peer-reviewed publication, and it plans to distribute the device to pharmacies and retail settings throughout the US.
The Series B financing round follows the completion of a pivotal clinical study in a retail pharmacy setting that demonstrated the accuracy of its technology compared with conventional blood testing, the firm said.
Last September, the company announced it had raised $13.7 million in a Series A financing round.