Diagnostics company LumiraDx announced it signed an agreement to sell its point-of-care technology to pharma giant Roche for $295 million, with an additional payment of $55 million to fund the platform until the acquisition closes. 

LumiraDx developed a diagnostic testing system that uses a small, portable instrument and microfluidic test strips to perform multiple lab-quality tests via a single device at the point of care. 

The device tests for coagulation, heart failure, inflammation, diabetes and respiratory viruses, including SARS-CoV-2, RSV and the flu.  

LumiraDx's offering will become part of Roche's diagnostics unit after the acquisition. 

The U.K.-based diagnostics company said proceeds from the sale, which is expected to close in mid-2024, will not be distributed to the company or its shareholders, but would be used to repay some of its debts.

"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," Veronique Ameye, CEO of LumiraDx, said in a statement.

THE LARGER TREND 

The company's stock price fell over 24% Tuesday to around $0.048 following the acquisition announcement. It has gradually dived from its high of $10.35 in 2021. 

In October, LumiraDx announced it received a letter from NASDAQ stating it could be delisted as it failed to regain compliance with the minimum stock price required of closing at $1 or more per share for at least 10 consecutive days to remain on the NASDAQ Global Market. The company said it planned to appeal. 

The same month, the company announced a strategic collaboration with AstraZeneca and sporting charity Everton in the Community to form a community-based heart and lung screening hub in England. 

In 2022, LumiraDx received a $14.2 million grant from the Bill & Melinda Gates Foundation to develop its point-of-care molecular tuberculosis testing system and launch it in developing countries.