Cue Health has raised $ 235 million to accelerate the growth of a business based on a fast, portable testing platform.
The COVID-19 pandemic put Cue, founded in 2010, on the map helping her raise $ 100 million, receive $ 481 million government contract and carry products on the market.
With the new funding, Cue plans to develop an extensive menu of tests and incorporate them into a care pathway that includes physician consultations via telemedicine.
Cue’s activities continue based on the rapid testing technology he developed and perfected with a single digit. series A. round of funding, $ 45 million B series investment. i government support. The central goal then, as now, was to facilitate the rapid delivery of diagnostic information at home, at work, and at the point of care.
COVID-19 gave Cue the opportunity to accelerate and expand its plans. Cue received emergency use authorization for its portable test and care point COVID-19 in June, before securing money to increase the manufacture of its battery reader and associated cartridges. In March, Cue became the first company to win a U.S. for an over-the-counter molecular home test.
Financial updates from public companies such as Abbott and Quidel suggest that the U.S. COVID-19 rapid testing market has softened in recent months. Still, Cue has still expanded its investor union to increase its largest round of financing to date.
New investors Perceptive Advisors, MSD Capital and Koch Strategic Platforms participated in the round with the support of existing sponsors, including Johnson & Johnson Innovation. MSD is the company that manages the capital of Dell Technologies founder Michael Dell.
Round size and investor identities suggest that Cue’s next step may be the public market. Perceptive and MSD have made investments prior to the IPO. One of MSD’s recent private investments in life sciences was made public six months after his private round. MSD recently configure a special purpose procurement company that will provide a company with an alternative path to public procurement.
Cue has plans that may require additional capital in the future. The San Diego-based company wants to build an offering that encompasses respiratory health, sexual health, heart and metabolic health, women’s health, men’s health, and chronic disease management. Instead of providing only evidence, Cue wants to “allow end-to-end care travel from diagnostic testing to physician consultation through telemedicine to intervention.”
Other diagnostic companies are also seeing their products in the broad context of a world in which the pandemic may have permanently changed the way healthcare is offered. Color, for example, seeks to build “a national technology-based public health infrastructure” around its tests.