Clarapath brings in $36M to modernize pathology labs with robotics

While robotics and automated systems have been introduced in healthcare settings as a way to alleviate workforce issues and standardize practices, most of the progress has been aimed at surgical robots or physical rehabilitation. Clarapath Inc. hopes to change this.

Last week, the Hawthorne, N.Y.-based company announced that it has raised $36 million in Series B-1 funding. Clarapath said it aims to modernize and transform how pathology laboratories process tissue. This latest round brings its total funding to $75 million.

The company said its SectionStar system combines robotics, artificial intelligence, and automation to modernize how labs process tissue samples. With the latest round of funding, Clarapath asserted that it will develop and deploy “a new category of healthcare robotics, machine vision, and digital automation tools, elevating the standard of care for hospitals and patients.”

Pathology can benefit from automation

The discipline of pathology involves the microscopic examination of cells and tissue, Clarapath explained. This work underpins the research, diagnosis, and treatment pathways of nearly every disease type, including cancer, autoimmune conditions, degenerative diseases, and more.

More than 12 million human and veterinary biopsies are performed each year in the U.S., with millions more performed for biopharmaceutical drug safety. Laboratories face a multi-pronged crisis, including severe labor shortages; rising caseloads; and an antiquated, manual process of preparing tissue samples, according to Clarapath.

“For too long, pathology laboratories have not seen the level of technology innovation that other areas of medicine have seen,” said Gregg Sossaman, M.D., chair of pathology and laboratory medicine at investor Ochsner Health and incoming president of the American Society for Clinical Pathology. “Clarapath demonstrates the right mix of technical, robotic expertise coupled with healthcare workflow experience.”

Clarapath to commercialize SectionStar

Northwell Ventures led Clarapath’s Section B-1 round, which also included new strategic investors including CU Healthcare Innovation Fund, Mayo Clinic, and Ochsner Ventures. 

“Innovation is embedded in Northwell’s culture and integral to the way we approach investment in novel solutions which improve patient care and lower cost.” said Rich Mulry, CEO of Northwell Holdings. “We identified Clarapath seven years ago as a company with a bold vision to radically change laboratory medicine and are committed to continued support of their progressive journey which will transform medical diagnostics.”

With the new capital, Clarapath said it plans to further accelerate the commercialization of SectionStar. It will also use the funds to expand its sales, services, and precision manufacturing capabilities, as well as to continue research and development. 

“Our strategic investors share in our mission to significantly overhaul this critical aspect of patient care that has long been overlooked,” stated Eric Feinstein, CEO of Clarapath.

“As labs adopt digital pathology downstream, automation in prior steps is crucial to establish consistent results and provide best-in-class samples for diagnostic review,” he added. “Our automation and new digital tools capture and aggregate never-before-seen data, ultimately benefiting patients with faster results and less subjectivity.”

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