Babson Diagnostics Closes $13.7 Million Series A Financing

Babson Diagnostics (Babson), a medical technology company, has closed $13.7 million in cumulative Series A funding, led by Siemens Healthineers, Prism Ventures, Genesis Merchant Capital, and Lago Consulting Group.
 
Originally incubated at Siemens Healthineers and developed in partnership with Becton Dickinson, Babson’s disruptive technology is designed to analyze capillary blood samples using only one-tenth the volume typically collected with venipuncture without sacrificing quality, accuracy, or menu breadth, all from a simple finger stick.
 
“With our strategic partnerships, clinical studies, and research and development programs in place with key retail partners, this financing moves our company into a crucial commercialization phase,” said Eric Olson, Babson’s founder. “Together with our growing team and strong network of strategic partners, we will realize our mission to improve our customers’ health by making diagnostic blood testing more convenient, accessible, and human.”
 
Babson plans to deploy its proprietary technology ecosystem at accessible retail locations—such as pharmacy counters—throughout the country, giving customers the benefit of longer hours of operation, low out-of-pocket costs, and a more human experience.
 
“Babson Diagnostics was incubated from its earliest days within Siemens Healthineers,” said Dr. Deepak Nath, president of laboratory diagnostics for Siemens Healthineers. “As an innovation- and consumer-driven company, we are excited to see that Babson’s work is still rooted in our shared values. The company continues to make great progress in democratizing diagnostic blood testing and in contributing to the U.S.’s fight against the COVID-19 pandemic.”
 
Babson’s first-generation SARS-CoV-2 IgG antibody test received U.S. Food and Drug Administration emergency use authorization in June. The company’s antibody test is offered free of charge to essential front-line pharmacy and grocery workforces, and is currently in use in clinical studies with leading research centers such as Dell Medical School at The University of Texas at Austin.

Babson also has appointed David Stein, Ph.D., former head of global strategy and innovation at Siemens Healthineers, to CEO. Eric Olson, Babson’s founder and former CEO, will assume the roles of chairman of the board and chief operating officer.

Dr. Stein—who holds a doctorate in engineering from Johns Hopkins University—also serves as a board member for Babson. His prior roles include head of strategy and innovation for Siemens Healthineers, CEO of Siemens’ point of care businesses, and global vice president of engineering within Siemens’ diagnostics division. Dr. Stein was instrumental in incubating Babson in the company’s earliest days.

“David and I have worked together for 20 years, and when he became available, the timing was perfect to expand the management team and take Babson into the next phase of growth,” Olson said. “I’ve known David personally and professionally for most of my career. I know what he can achieve and I trust he’ll achieve it with integrity. His expertise in leading business development on behalf of the world’s leading medical technology companies will prove invaluable to Babson as we work to transform the diagnostics industry.”

Olson will continue to lead Babson’s operations, technology, and clinical affairs, while Dr. Stein will lead the formation of the company’s commercialization, marketing, and business development teams.

“Eric and the Babson Diagnostics team have built a truly unique diagnostics model underpinned by the world’s leaders in health care innovation,” Dr. Stein said. “The broad interest in Babson’s recent Series A funding exemplifies the demand to redefine in-vitro diagnostic testing and will be critical in supporting Babson Diagnostics’ mission to fundamentally change how samples are collected, processed and analyzed. It’s an honor to join the core team to bring Eric’s vision to life.”