LumiraDx Sells Point of Care Technology Platform to Roche

February 19, 2024
LumiraDx has signed a definitive agreement with Roche to sell certain companies of the LumiraDx group that are involved in the point-of-care diagnostics platform business, along with certain related assets. They provide diagnostic solutions at the point-of-care, and have appointed joint administrators for two subsidiaries, LumiraDx Group Limited and LumiraDx International Limited. These two companies hold most of the assets.

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 transaction will be completed only after fulfilling certain conditions, including antitrust and regulatory approvals. It is expected that the transaction will close by mid-2024. Roche's acquisition of LumiraDx's innovative point-of-care technology will help Roche expand its diagnostic testing globally. The sale proceeds will be used to repay certain amounts outstanding under the Company’s senior secured loan agreement. The Company or its shareholders will not receive any sale proceeds.

The appointment of the administrators and the sale to Roche mark the end of LumiraDx’s previously announced strategic review process led by Goldman Sachs & Co. LLC. MarketsandMarkets’ analysts estimate that the Lateral Flow Assays market is expected to grow at a CAGR of 2.0% to reach $22.6 billion by 2027. The key players in the market include Roche Diagnostics, Abbott Laboratories, Siemens Healthineers, Danaher Corporation, and Becton, Dickinson and Company. The market growth factors include the increasing prevalence of infectious diseases, the rising incidence of target conditions, and the growing demand for home-based POC devices.

 

MarketsandMarkets Industry News Desk

 

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LumiraDx has signed a definitive agreement with Roche to sell certain companies of the LumiraDx group that are involved in the point-of-care diagnostics platform business

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.

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