Clarapath closes $36 million Series B investment round to ‘transform 150-year old laboratory processes’
Clarapath, a medical robotics company modernizing and transforming how pathology laboratories process tissue, has raised $36 million in its Series B-1 funding round, which was led by Northwell Ventures.
Additional new strategic investors participated in the financing, including CU Healthcare Innovation Fund, Mayo Clinic, and Ochsner Ventures, bringing the company’s total funding to $75 million.
Eric Feinstein, CEO of Clarapath, says: “Our strategic investors share in our mission to significantly overhaul this critical aspect of patient care that has long been overlooked.
“As labs adopt digital pathology downstream, automation in prior steps is crucial to establish consistent results and provide best-in-class samples for diagnostic review.
“Our automation and new digital tools capture and aggregate never-before-seen data, ultimately benefiting patients with faster results and less subjectivity.”
The discipline of pathology involves the microscopic examination of cells and tissue, underpinning the research, diagnosis and treatment pathway of nearly every disease type including: cancer; autoimmune conditions; degenerative diseases and others.
Currently in the US, more than 12 million human and veterinary biopsies are performed each year, with millions more for biopharmaceutical drug safety.
Today, a multi-prong crisis exists in laboratories that is driven by severe labor shortages, rising caseloads and an antiquated, manual process of preparing tissue samples.
Rich Mulry, CEO of Northwell Holdings, says: “Innovation is embedded in Northwell’s culture and integral to the way we approach investment in novel solutions which improve patient care and lower cost.
“We identified Clarapath seven years ago as a company with a bold vision to radically change laboratory medicine and are committed to continued support of their progressive journey which will transform medical diagnostics.”
Robotics and automated systems have been introduced in healthcare settings as a way to alleviate workforce issues and standardize, however most of the progress has been aimed at surgical robots or physical rehabilitation.
With this latest round of funding, Clarapath is poised to be the first US-based company to develop and deploy a new category of ground-breaking healthcare robotics, machine vision and digital automation tools, elevating the standard for hospitals and patients.
Gregg Sossaman, MD, Chair of Pathology and Laboratory Medicine at Ochsner Health and incoming President of the American Society for Clinical Pathology, says: “For too long, pathology laboratories have not seen the level of technology innovation that other areas of medicine have seen.
“Clarapath demonstrates the right mix of technical, robotic expertise coupled with healthcare workflow experience.”
With this new capital, Clarapath will further accelerate the commercialization of SectionStar. The company will also leverage the funds to expand its sales and service, precision manufacturing capabilities as well as continue its robust R&D pipeline.
“Together, we are building the foundation for a ‘lab of the future’ that incorporates end-to-end automation, robotics, and AI to the patient tissue lifecycle,” says Joaquín García, MD, chair of the division of Anatomic Pathology within Mayo Clinic’s Department of Laboratory Medicine and Pathology and chair of Mayo Clinic’s Digital Pathology Program.
