Cue Health Secures $100 Million Series C Funding to Advance Development and Manufacturing of Its Diagnostic Platform and Test Cartridges

On June 12, 2020, VCBeat (WeChat Official Account: vcbeat) learned that Cue announced on June 10 local time the completion of a $100 million Series C financing round. This round was jointly invested by Decheng Capital, Foresite Capital, Madrone Capital Partners, Johnson & Johnson Innovation - JJDC, Acme Capital, and other investment firms. Goldman Sachs & Co. LLC served as the exclusive financial advisor for this financing round.

It is reported that prior to this round of financing, Cue Health had raised $18 million in equity since its establishment in 2013, having completed its Series A, seed, and Series B financings as well as securing government grants in 2014, 2017, 2018, and 2020, respectively.

(from Crunchbase company financing information)

The financing will support the development, validation, and large-scale manufacturing of Cue Health’s Cue Monitoring System and Cue Test Kits. The company currently occupies a 55,000-square-foot facility in San Diego and plans to expand its footprint to 110,000 square feet to enhance product development and commercialization, including a rapid, easy-to-use, portable molecular test kit for COVID-19. The Emergency Use Authorization (EUA) for this product is currently under review by the U.S. Food and Drug Administration (FDA).

Ayub Khattak, Founder and CEO of Cue, stated, “Amid the severe COVID-19 pandemic, there is an urgent need for a rapid diagnostic platform capable of operating in decentralized settings to address existing emergency threats. Healthcare sectors such as nursing homes, emergency departments, and community health clinics can leverage these tools to quickly obtain test results, rather than waiting hours or even days for laboratory outcomes. Years of work and preparation by the Cue team have positioned us to help manage current public safety emergencies and future security threats.” Furthermore, Ayub added, “We are thrilled to welcome strong investors who have long focused on life sciences and healthcare and share our vision for transforming diagnostics. Ultimately, healthcare professionals and consumer users of the Cue platform will be widely distributed across the globe, sharing data with one another. This distribution will enable a new model of rapid, on-demand diagnostic testing with enhanced telemedicine capabilities, thereby revolutionizing how critical health information is accessed and processed.”

Cue Health Inc. (Cue) is an ISO 13485-certified company founded by Ayub Khattak and Clint Sever, dedicated to the development and manufacture of consumer-facing and professional medical diagnostic products for use in clinical or home settings. Cue’s mission is to create tools that empower physicians and consumers to enhance their access to actionable medical data. The Cue Health Monitoring System is the first connected diagnostic platform developed by Cue. The company is headquartered in San Diego, California.

Goldman Sachs & Co. LLC, founded in 1869, is a national financial advisory firm headquartered in New York City, USA. The company provides investment banking, securities and investment management services, and financial services to corporations, financial institutions, governments, and high-net-worth individuals worldwide.

Foresite Capital is a firm specializing in healthcare and life sciences investments across all stages, applying rigorous scientific and data-driven methodologies to its investment analysis. The company manages $2 billion in assets, with its headquarters in San Francisco, USA, and an office in New York. Led by a multidisciplinary team of scientists, engineers, analysts, and clinicians, Foresite Capital adopts a collaborative approach to investing in its portfolio companies, leveraging not only capital but also deep expertise in the unique business models of the healthcare sector. The firm places particular emphasis on companies that integrate data science and machine intelligence tools into healthcare.

Johnson & Johnson Innovation – JJDC is the strategic venture capital arm of Johnson & Johnson Innovation. The firm invests across all stages in pharmaceuticals, medical devices, and consumer health, from seed-stage startups to Series B financing and beyond. JJDC aims to identify transformative ideas and help turn them into real-world solutions.