GE Capital and GE Healthcare, the financial services and healthcare divisions of General Electric Co. announced an investment in C8 MediSensors Inc., a privately held developer of non-invasive continuous glucose monitors for diabetic patients. The investment is being made through the GE healthymagination Fund, an equity fund that makes investments in highly promising healthcare technology companies.

The investment is aligned with GE Healthcare’s expanding focus on disease management solutions that can improve healthcare globally, as well as GE’s broader healthymagination initiative, which focuses on reducing cost, increasing patient access and improving quality in healthcare. Financial terms of the transaction were not disclosed.

C8 MediSensors has combined their proprietary technology with Raman spectroscopy to commercialize a non-invasive glucose monitor that can improve the lives of diabetics by giving them a continuous view of their glucose levels without the pain, inconvenience and high cost of invasive glucose monitoring.

“C8’s technology platform presents great promise for patients to avoid the discomfort of traditional invasive glucose monitoring,” said GE Vice President and GE Healthcare Chief Technology Officer Mike Harsh. “This investment aligns with our strategy to fund innovations focused on reducing cost, increasing patient access and improving quality in healthcare.”

The investment in C8 reflects GE Healthcare’s continuing interest in early-stage healthcare technologies. As an investor, GE Healthcare will look for various ways to work with C8 that complement the strategic objectives of its healthymagination initiative.

“C8 is a good strategic fit with GE Healthcare, given our common focus on patient care concerns,” said Thierry Leclercq, General Manager of GE Healthcare’s Life Care Solutions business. “GE Healthcare’s growing patient care product portfolio encompasses a wide range of clinical tools and solutions. We believe C8’s non-invasive continuous glucose monitor gives both clinicians and patients a far simpler way to monitor glucose levels. We look forward to exploring ways to collaborate with the C8 team.”

“We are pleased to have GE, through its healthymagination Fund, as new investors in C8 MediSensors,” said Fred Toney, Chief Financial Officer of C8 MediSensors. “GE’s knowledge and breadth of reach throughout the healthcare vertical is a significant advantage to C8 MediSensors as we execute our business plan.”

C8 MediSensors plans to introduce its new noninvasive continuous glucose monitor in the European Community in 2012, pending CE Mark regulatory approval.

Following the announcement of its plans to invest $1 billion into its cancer business, particularly cancer IVDs, GE is making yet another serious push into the IVD market and vying to become a major IVD player. In addition to its billion-dollar investment into cancer IVDs, GE is upping the ante again by becoming more involved in developing blood glucose monitors, one of the largest sectors in the IVD market.

-Richard Park