LumiraDx Announces Agreement to Sell its Cutting Edge Point of Care Technology Platform to Roche
LONDON, Dec. 29, 2023 (GLOBE NEWSWIRE) -- LumiraDx Limited (NASDAQ:LMDX) (the "Company"), a next generation point of care diagnostics company, announced today the appointment of joint administrators for two of its subsidiaries. The administrators have signed a definitive agreement to sell certain companies of the LumiraDx group related to LumiraDx's innovative point of care technology to Roche.
The Company announced today that Andrew Johnson, Lisa Rickelton and Lindsay Hallam of FTI Consulting LLP have been appointed as joint administrators of two of its subsidiaries, LumiraDx Group Limited and LumiraDx International Limited, which together hold substantially all of the assets of the LumiraDx group.
The appointed administrators entered into a definitive agreement for Roche to acquire certain companies of the LumiraDx group engaged in its point of care diagnostics platform business and certain related assets. Under the terms of the agreement, at the closing of the transaction Roche will pay a purchase price of USD 295 million (subject to customary closing adjustments) and an additional payment of up to USD 55 million for the reimbursement of amounts to fund the point of care diagnostics platform business until the closing of the acquisition. The completion of the transaction is subject to certain conditions, including antitrust and regulatory approvals, and is currently expected to close by mid-2024.
Veronique Ameye, Chief Executive Officer of LumiraDx said, "Since our founding, we have sought to transform community-based healthcare by consolidating multiple Point of Care tests on a single instrument. We are excited to enter into this agreement with Roche as it will enable us to continue our important work and increase the reach of our innovative technology around the globe. This will enable more patients to get fast and easy access to better diagnostic testing."
It is anticipated that all of the sale proceeds of the transaction will be used to repay certain amounts outstanding under the Company's senior secured loan agreement, and that no sale proceeds will be distributed to the Company or its shareholders. The appointment of the administrators and sale to Roche represent the culmination of LumiraDx's previously announced strategic review process led by Goldman Sachs & Co. LLC.
For additional information about the transaction and related events, please see the Form 6-K to be filed by the Company with the U.S. Securities and Exchange Commission ("SEC") on or around December 29, 2023.
About LumiraDx
LumiraDx Limited (NASDAQ:LMDX) is a next-generation point of care diagnostics company that is transforming community-based healthcare. Its actively controlled microfluidic technology provides fast, high performance and accessible diagnostic solutions wherever the patient is for nearly any testing scenario, creating unique testing options at the point of need.
The Company offers a broad menu of lab comparable tests on a single portable Platform, with a target of >30 assays on the market and in various stages of development, covering infectious disease, cardiovascular disease, diabetes, and coagulation disorders. The Company also supports high-complexity laboratory testing in an accessible high-throughput format to leverage current molecular laboratory operations.
Founded in 2014 and based in the UK, LumiraDx's diagnostic testing solutions are being deployed globally by governments and leading healthcare institutions across laboratories, urgent care, physician offices, pharmacies, schools, and workplaces to help screen, diagnose, and monitor wellness as well as disease. More information on LumiraDx is available at www.lumiradx.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including, but not limited to, statements related to the timing and anticipated completion of the transaction, and other statements that are not purely statements of historical fact. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of the Company and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. Factors that could cause actual results to differ materially from the forward-looking statements contained herein include, but are not limited to: potential adverse reactions or changes to business relationships resulting from the announcement or completion of the transaction; litigation or adverse judgments relating to the transaction; risks relating to the consummation of the contemplated transaction, including the risk that the required approvals might not be obtained in a timely manner or at all or that other closing conditions will not be satisfied; difficulties associated with requests or directions from governmental authorities resulting from their reviews of the transaction; and any changes in general economic and/or industry-specific conditions. Additional factors that could cause actual results to differ materially from those described in the forward-looking statements are set forth under the heading "Risk Factors" in the Company's Annual Report on Form 20-F for the year ended December 31, 2022, which was filed with the SEC, on May 1, 2023, and in other filings that the Company makes with the SEC. Although LumiraDx believes that it has a reasonable basis for each forward-looking statement contained in this press release, LumiraDx cautions you that these statements are based on a combination of facts and factors currently known by it and its projections of the future, about which it cannot be certain. LumiraDx undertakes no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise.
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