Cue Health has closed on a private placement of $235 million – continuing its trend of bringing in strong financing rounds. Recall, the firm raised $100 million in a series C round in June of 2020.
The private placement participation from new investors Perceptive Advisors, MSD Capital, and Koch Strategic Platforms, a subsidiary of Koch Industries, existing investors Johnson & Johnson Innovation – JJDC, Inc. (JJDC), Decheng Capital, CAVU Ventures, ACME Capital, and others.
The San Diego, CA-based company said it will use the capital to accelerate its growth as it pioneers a digital transformation of healthcare, beginning with diagnostics. The company is well known for its Cue Health Monitoring System, which currently being used for COVID-19 testing.
Cue said it plans to develop a suite of testing offerings to address respiratory health, sexual health, cardiac and metabolic health, women's health, men's health, and chronic disease management by connecting diagnostics with telemedicine.
"The ongoing COVID-19 pandemic has exposed many of the shortfalls of the status quo healthcare model," Ayub Khattak, co-founder and CEO of Cue, said in a release. "It's clear that the world needs to make the move to Healthcare 2.0, a decentralized, responsive, digital-first and consumer-centric model that makes it easy to access important health information and act on it. We believe distributed diagnostics is the key missing piece to bridge the physical to virtual care continuum, and we're excited to have Perceptive, MSD, Koch and others join us on our mission to lead this transformation."
In March, Cue announced it won emergency use authorization for an over-the-counter COVID-19 test. Cue’s diagnostic uses a lower nasal swab and delivers results in about 20 minutes to the user's mobile smart device. It is aimed at consumers ages 2, and older – without the need for a prescription.
