Noah Medical, a Silicon Valley-based robotic lung surgery company, has raised $150 million in a series B funding round led by Softbank Vision Fund and co-led by Prosperity7 Ventures.
Noah Medical’s Galaxy system uses disposable probes to perform navigated lung bronchoscopies, allowing faster turnaround times between patients and reducing the risk of cross-contamination. The system’s Tool-in-Lesion Tomo+ technology (TiLT+) provides surgeons with real-time, image-guided updates to confirm when the biopsy tool is fully within the target tissue.
Noah Medical has received clearance from the FDA to use the system commercially in the United States, and it has also started conducting first-in-human clinical trials at Macquarie University Hospital in Sydney. Noah founder and CEO Jian Zhang said in a release, “Next generation robotics platforms like the Galaxy System are filling procedural gaps to provide superior clinical values to better serve customers’ needs.”
However, Noah Medical is currently embroiled in a lawsuit filed by Johnson & Johnson’s robotic surgery subsidiaries, Auris Health and Verb Surgical, and its Cilag pharmaceutical unit. The suit alleges that three former Auris employees transferred trade secrets to Noah and that one of Noah’s patent applications includes Auris technology. The court has scheduled a hearing on Noah’s motion to dismiss the complaints for May 10.
The significant influx of capital is expected to cause concern among Noah’s competitors. The capital will be utilized to cater to the increasing demand for the Galaxy System, which is specifically created to enhance the precision of location and the effectiveness of diagnosing lung nodules.
In addition to the Softbank Vision Fund and Prosperity7 Ventures, several other prominent investors participated in the oversubscribed funding round for Noah Medical. Hillhouse, Sequoia China, Tiger Global, Uphonest Capital, Sunmed Capital, Shangbay Capital, 1955 Capital, Lyfe Capital, and AME Cloud Ventures all contributed to the funding, along with other undisclosed strategic and existing investors.
The total amount raised in the round was $150 million, which will be used to help build a commercial engine behind the Galaxy system, a next-generation, integrated solution for navigated robotic bronchoscopy.
The development of more sophisticated medical technologies that enhance treatment outcomes while minimizing the risk of cross-contamination is a critical priority for the healthcare sector. The Galaxy System’s disposable probes and image-guided updates have the potential to reduce the risk of medical errors while improving treatment efficacy.
While the lawsuit against Noah Medical casts a shadow over the company’s operations, the success of its funding round indicates a positive outlook for the company’s future in the medical technology sector.
The funding round is expected to strengthen Noah Medical’s position as a leading developer of robotic lung surgery technology. The Galaxy System has the potential to improve patient outcomes from treatments whie also reducing cross-contamination risk.