Cue Health (Cue), the creator of an app-connected health monitoring device system, raised $100 million in Series C financing to launch its rapid molecular testing platform.
Investors include Foresite Capital, Decheng Capital, Madrone Capital Partners, Johnson & Johnson Innovation (JJDC), ACME Capital, and other investment firms.
The company plans to use new funds to complete development, validation, and scale-up of the manufacturing of the Cue Health Monitoring System and Cue Test Cartridges. The funds will also support the development and commercialization of its products, including a molecular test for COVID-19, which is under review by the Food and Drug Administration (FDA) for an emergency use authorization.
Goldman Sachs acted as exclusive placement agent for the Series C financing while WilmerHale and Foley & Lardner acted as legal advisors to the company.
Founded in 2010, San Diego-based company – Cue has raised over $150 million to date, including a $45 million Series B financing round in 2018. The company’s existing investors include Section 32, Synergy Ventures, Principles of Tarsadia Investments, Pritzker Group Venture Capital, Babel Ventures, Troy Capital, Sherpa Capital, Cove Investments, Rohan Oza, SherpaVentures, and Immortalana.
Ayub Khattak, co-founder, and CEO of Cue, said, “The COVID-19 pandemic has highlighted the need for a rapid, easy-to-use platform for diagnostics in decentralized settings to respond to existing and emerging threats. Healthcare settings such as nursing homes, emergency departments, and community health clinics need tools to allow them to access molecular test information immediately rather than waiting hours or days for lab results. Cue is grateful that our team’s years of hard work and preparation have put us in a position to assist with the current emergency and future threats.”
In addition to financing, the company has been awarded contracts totaling over $30 million by the U.S. Department of Health and Human Services’ (HHS) Biomedical Advanced Research and Development Authority (BARDA), which coordinates some of the HHS response to disasters and public health emergencies. The award funding has supported the company to accelerate the development of its influenza and COVID-19 tests.
The connected health monitoring devices raised $78 million during Q1 2020.
Image Credit: Cue Health