Leslie Trigg is CEO of San Jose's Outset Medical, which makes a newly approved dialysis… more

Outset Medical, a San Jose company that makes dialysis equipment it says is far smaller and easier to use than the products of its rivals, has closed a dual-stage $91 million equity and debt financing round.

New investor Fidelity Research and Management Co. led a $51 million equity round, with help from prior investors Warburg Pincus and The Vertical Group as well as new investors Partner Fund Management LP, Perceptive Advisors and Capital Royalty Group.

CRG also led a $40 million debt financing.

Related Content

Bizspace Spotlight

This week's news expands on information Outset Medical disclosed May 21 in a regulatory filing. At the time, it said the Series B funding would raise $60 million, including $45 million in equity and $15 million in converted warrants.

CEO Leslie Trigg told me Monday that the complicated deal required a "two-stage close," with both stages now completed.

"Our plan is to ramp up commercialization pretty rapidly in the next couple of years," Trigg told the Business Times, adding that the $40 million in debt financing gives Outset "additional runway to power the business and invest in growth."

The market for such devices is estimated at $13 billion annually, says investor Warburg Pincus.

The company, which launched in 2010, has high hopes for its Tablo blood-filtering device, which at 35 inches tall and turquoise in color, is expected to be less intimidating to patients than traditional dialysis equipment.

It won Food and Drug Administration approval last fall for use in hospitals and dialysis clinics, Trigg said, along with a regulatory OK to do a investigational device exemption (IDE) trial to evaluate its safety and efficacy in the home setting.

Trigg said Outset is ramping up manufacturing of the device to support use in approved clinical settings.

Receive San Francisco Business Times's Morning Edition and Afternoon Edition newsletters and breaking news alerts.

...