LumiraDx, a diagnostics company, has signed an agreement to sell its point-of-care technology platform to pharmaceutical company Roche for $295 million. Roche will also pay an additional $55 million to fund the platform until the acquisition closes, which is expected to occur by mid-2024. LumiraDx’s diagnostic testing system uses a small, portable instrument and microfluidic test strips to perform multiple lab-quality tests at the point of care. The tests include coagulation, heart failure, inflammation, diabetes, and respiratory viruses such as SARS-CoV-2 and the flu. Roche plans to integrate LumiraDx’s offering into its diagnostics unit after the acquisition.
The sale proceeds will not be distributed to LumiraDx or its shareholders, but instead, they will be used to repay some of the company’s debts. LumiraDx aims to transform community-based healthcare by consolidating multiple point-of-care tests on a single instrument, and the acquisition by Roche will allow the company to continue its work and increase the reach of its innovative technology globally.
LumiraDx’s stock price decreased by over 24% following the acquisition announcement. The company has faced financial difficulties and received a letter from NASDAQ in October stating that it could be delisted due to its failure to regain compliance with the minimum stock price requirements. LumiraDx has also faced challenges but has received grants and formed collaborations to advance its testing technology. In 2022, the company received a $14.2 million grant from the Bill & Melinda Gates Foundation to develop its point-of-care molecular tuberculosis testing system.
Key Points:
- Diagnostics company LumiraDx is selling its point-of-care technology to Roche for $295 million.
- Rahe of the amount to pay for the device is $55 million
- LumiraDx’s device performs multiple lab-quality tests using a small, portable instrument and microfluidic test strips.
- The acquisition is expected to close by mid-2024, and LumiraDx’s offering will become part of Roche’s diagnostics unit.
- The sale proceeds will be used to repay LumiraDx’s debts.
What’s Next?
The acquisition of LumiraDx’s point-of-care technology by Roche highlights the growing importance of rapid diagnostic testing at the point of care. LumiraDx’s technology offers the ability to perform multiple tests on a single device, improving efficiency and accessibility in healthcare settings. With Roche’s resources and global reach, the integration of LumiraDx’s offering into its diagnostics unit will likely expedite the adoption and availability of this technology on a larger scale. The acquisition also provides LumiraDx with the financial support needed to continue its important work and expand the reach of its innovative technology worldwide.