T2 Biosystems reels in a $40 million Series E round for its MR-based molecular diagnostic test for the Candida fungus, a leading cause of hospital-acquired infections.

T2 Biosystems

T2 Biosystems, which is developing a diagnostic device that uses magnetic resonance technology to deliver nearly instant test results, said it raised a $40 million Series E round it plans to use for its T2Candida test for a common cause of hospital-acquired infections.

The Lexington, Mass.-based company said it also plans to use the proceeds for "to complete development of additional sepsis diagnostic panels and to advance and expand its research and development of other molecular, immunodiagnostic and hemostasis assays," according to a press release.

The T2Candida test is for the Candida fungus, estimated to cause some 100,000 cases of candidemia each year in the U.S., according to the release. T2 Biosystems said sepsis from candidemia has a 40% mortality rate that can be slashed to 11% "with early identification of the specific species."