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T2 Biosystems Raises $23M in Series D Round

NEW YORK (GenomeWeb News) – Molecular diagnostics company T2 Biosystems today said it has closed its $23 million Series D financing round.

The funds will be used to support ongoing clinical trials and technology development as the company prepares to seek regulatory approval and commercialization of its T2MR diagnostic technology based on magnetic biosensor detection. The funding will also allow it to expand its partnering program, the Lexington, Mass.-based company said.

Leading the round was new investor Aisling Capital. Existing investors Flagship Ventures, Polaris Venture Partners, Flybridge Capital Partners, Physic Ventures, Partners Healthcare, Arcus Ventures, RA Capital, Camros Capital, and WS Investments also participated in the round.

Josh Bilenker, principal at Aisling Capital, is joining T2's board, the company said.

T2 raised $15 million in a Series C round last year.

The T2MR technology is a direct detection diagnostic method that circumvents the need for sample purification and growth of blood cultures, T2 said, adding that results can be achieved in less than two hours, compared to current technologies that require one or more days for results.

T2's lead product is a rapid detection assay for Candida.

"T2 Biosystems is developing a platform that will fundamentally improve current diagnostic standards by enabling a broad menu of molecular and immunodiagnostic tests from a single sample," John McDonough, president and CEO of T2, said in a statement.

He added that the funding will move the Candida test toward an expected FDA submission in the second half of 2012 "and accelerate the development of our pipeline of additional diagnostic tests focused on sepsis, infectious disease, therapeutic drug monitoring, and coagulation."

The beta launch of the T2 diagnostic instrument is anticipated in the fall, McDonough said.