Cue Health, a rapid diagnostics startup with a connected testing device platform, has closed a massive $235 million private financing round.
Investments were made by new backers Perceptive Advisors, MSD Capital and Koch Strategic Platforms, as well as by existing investors including Johnson & Johnson Innovation, Decheng Capital, CAVU Ventures, ACME Capital, and others.
This latest cash infusion comes less than a year after Cue closed its $100 million Series C round.
WHAT IT DOES
The San Diego-based startup’s lead product is the Cue Health Monitoring System, a molecular testing device designed for use in care settings, schools, homes and other places. The system consists of a single-use testing swab, a disposable cartridge and a portable reader. It can deliver results within 20 minutes.
Cue’s system delivers its results digitally to either a patient-history-software dashboard for providers or a mobile app for consumers. Both interfaces include easy connections to telehealth consultations and prescription services.
The company adapted its system during the pandemic to test for COVID-19 and received emergency use authorization from the FDA for the test kit, which does not require a prescription and can be used at home.
Cue plans to expand its testing capabilities to include respiratory health, sexual health, cardiac and metabolic health, women’s and men’s health, and chronic disease management.
WHAT IT’S FOR
The new capital will be used to accelerate Cue’s growth, the company said in its announcement.
“The ongoing COVID-19 pandemic has exposed many of the shortfalls of the status quo healthcare model,” Ayub Khattak, cofounder and CEO of Cue said in a statement.
“It’s clear that the world needs to make the move to Healthcare 2.0, a decentralized, responsive, digital-first and consumer-centric model that makes it easy to access important health information and act on it. We believe distributed diagnostics is the key missing piece to bridge the physical to virtual care continuum, and we’re excited to have Perceptive, MSD, Koch and others join us on our mission to lead this transformation.”
MARKET SNAPSHOT
Since the emergence of COVID-19, there’s no shortage of diagnostic testing companies on the market.
Everlywell, which has a suite of at-home diagnostic tests, recently bought up PWNHealth and its subsidiary Home Access Health to form a new parent company called Everly Health.
Ellume scored a $232 million deal with the Biden administration earlier this year to increase the availability of its at-home rapid response COVID-19 test kit in the U.S.
Focused on the employee market, Truepill recently rolled out a suite of COVID-19-focused diagnostics and digital tools.
Researchers at the University of Pennsylvania School of Medicine recently developed a prototypical COVID-19 diagnostic test designed to be fast-acting and more affordable than other tests on the market.
Consumers can expect to see even more tests become available. As the FDA recently shared, it will allow marketing for some COVID-19 screening tests before their effectiveness is studied in asymptomatic individuals.