Coralville-based Digital Diagnostics, an AI diagnostic health care technology company, announced Aug. 23 it has closed a $75 million Series B funding round.
The cash influx will be used to accelerate its product roadmap, expand its distribution footprint and invest in sales and marketing, according to a press release.
Digital Diagnostics is known for its flagship product IDx-DR, an autonomous AI diagnostic system designed to detect diabetic retinopathy (including diabetic macular edema) at the point-of-care. Diabetic retinopathy causes blindness in 12,000-24,000 Americans each year, according to a 2017 study from the CDC.
“Our Series B fundraise, supported by our accelerating commercial traction, is another validation point that autonomous AI in health care is now mainstream,” said John Bertrand, co-founder and CEO of Digital Diagnostics, in a statement. “We are focused on innovating the way providers manage patient care by creating technology rooted in equity and widespread access, while positively impacting patient outcomes through our AI solutions.”
Used in 17 global markets, the product was the first autonomous AI device receive the FDA Breakthrough Device status. The designation is restricted to technologies that provide for more effecÂtive treatment or diagnosis of life-threatÂening diseases and those that cause irreÂversible damage.
Investment firm KKR led funding round with Cedar Pine, Kinderhook, 8VC, Optum Ventures, OSF Ventures, Gundersen Health System, Edward – Elmhurst Health Venture Capital and the University of Iowa.
Digital Diagnostics has now raised more than $130 million .
“Digital Diagnostics’ AI technology platform is paving the path as a standard of care in the health care industry,” said Seth Rainford, co-founder, president and COO, in a statement. W’e’re focused on meeting patients where they want to experience health care – from primary care and value-based care groups to retail brick and mortar locations.”Â
The company rebranded from IDx after purchasing Boston-based 3Derm Systems in September 2020, allowing them to hold the intellectual property to IDx-DR and 3DermSpot, a skin cancer diagnostic system.
Founded by ophthalmologist and retina specialist Dr. Michael Abramoff, he saw patients come to him with diabetic retinopathy when the disease was too advanced to be properly treated. He began to invent algorithms to detect the disease at an earlier stage, leading to the eventual creation of IDx-DR.
Only 15% of people with diabetes receive the recommended annual diabetic eye exam and access is especially limited in rural or underserved areas, according to a release.
In March, Digital Diagnostics and Baxter International announced a long-term strategic partnership to help front line care providers. It included plans to offer IDx-DR software as a service combined with Baxter’s Welch Allyn RetinaVue 700 Imager.
