Quanta Raises $245 Million to Accelerate Commercialization of its SC+ Portable Hemodialysis System

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Quanta Dialysis Technologies Ltd (“Quanta” or the “Company”), a medical technology leader delivering on its vision for more flexible and accessible dialysis care, announced today that it has raised $245 million in an oversubscribed and upsized Series D round, the largest private funding round for a dialysis device company in history.

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We are delighted to attract such a strong syndicate of investors, which represents a clear vote of confidence in our innovative approach to dialysis treatment. Everybody knows that dialysis care must improve. For this to happen, providers and physicians need products that allow greater flexibility to bring dialysis directly to the patient, while simplifying complexity and reducing the overall cost of care. Our small, simple-to-use, and powerful dialysis system SC+ is positioned to help transform kidney care. The funding we are announcing today will allow us to accelerate our emergence as a significant force in this market.

John E. Milad

CEO

Quanta

The financing round was led by Glenview Capital and co-led by Novo Holdings, with support from a broad group of other top-tier investors, including BlackRock, Eldridge, Sands Capital, Millennium Management, Monashee Investment Management LLC., Puhua Capital, Segulah Medical and Ancora, alongside Orlando Health, an integrated delivery network. Existing shareholders also participated in the round, including Wellington Partners, btov, Seroba Life Sciences and The Grands. Lee Hathaway, Partner and Co-Head of Healthcare at Glenview Capital, and Robert Ghenchev, Senior Partner at Novo Holdings and Head of Novo Growth, will be joining the Quanta Board of Directors.

Quanta’s award-winning portable hemodialysis system SC+ is the only next-generation system that delivers the performance and dose equivalence of larger, traditional dialysis systems—with on-demand dialysate production and high dialysate flow rates—while also offering the portability, digital connectivity and ease-of-use of a next-generation dialysis device. Additionally, Quanta’s companion water purification module works with SC+ as an all-in-one mobile stack allowing dialysis treatments to be delivered in settings with just a standard water supply. This winning proposition positions SC+ to unlock the potential benefits of more flexible and more efficient dialysis delivery models for payors, providers, physicians and patients.

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We are excited to partner with the existing and new shareholders of Quanta to support Management’s commitment to transform and improve the safety, efficacy, cost and convenience of hemodialysis treatment. Quanta’s innovative cartridge-based system is compact, simple, and powerful and provides tremendous value and treatment flexibility for providers and patients across an omni-channel delivery chain, from dedicated dialysis centers, acute care hospitals, and increasingly moving into the home. With this growth capital, Quanta has the resources to drive improved patient outcomes and convenience while accelerating market penetration and scale.

Lee Hathaway

Glenview Capital

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We’ve been very impressed with Quanta’s team and innovative technology, which is making a meaningful difference to dialysis patients’ lives, and are excited to invest alongside a strong syndicate of investors committed to improving dialysis care.

Robert Ghenchev

Novo Holdings

For chronic kidney disease patients, the current model requires them to spend multiple hours on multiple days each week in a dialysis clinic. The time and travel required of patients already living with conditions like chronic kidney disease is burdensome and limits their opportunities. Even more troubling, this model offers sub-optimal outcomes, leading to costly emergency care and even death when patients are unable to maintain the stringent schedule of treatments.

Acute patients are also underserved by current approaches that rely on expensive and cumbersome devices. SC+ is able to deliver the standard-of-care with a portable, easy-to-use machine designed to be brought to the patient. For vulnerable patients in hospital and post-acute settings, being able to access dialysis on-site can mean better outcomes and lower costs of care.

Current demand from acute care facilities in conjunction with a shift towards home-based dialysis care empowered by new all-in-one, enterprise-grade solutions like Quanta’s SC+, sets the stage for Quanta to become a leader in a growing market with a total addressable market projected to exceed $12 billion in the United States alone.

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Innovation in kidney dialysis has been stagnant for too long – but the demand from patients, doctors, health care providers and payors for new, better and more flexible solutions is impossible to ignore. We are excited to scale up our operations, enabling us to provide access to this critical new technology that will save lives, improve patients’ quality of life and lower healthcare costs.

Johan de Ruiter

Chairman

Quanta

The funding announced today will allow Quanta to scale up global operations with a focus on the United States, where SC+ received 510(k) clearance from the FDA in December for use in acute and chronic care facilities. The company is investing in significant infrastructure to scale up manufacturing, sales and customer service functions to support use in currently approved care settings within the United States, while also preparing to launch a study to support its future FDA clearance for in-home use within the United States.

J.P. Morgan served as exclusive placement agent to Quanta for the transaction.

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