UK diagnostics firm LumiraDx is to list on the Nasdaq via a merger with US investment group CA Healthcare Acquisition Corp.
The combination reflects a value of US$5bn for Lumira’s existing equity, before giving effect to the transaction.
Since its founding, LumiraDx has raised US$700m in equity capital including investments by Morningside Ventures, US Boston Capital Corporation, The Bill & Melinda Gates Foundation, Petrichor Healthcare Capital Management and other global strategic partners.
LumiraDx’s diagnostic platform, which has been in development since 2014, enables a range of tests with lab-comparable performance at a low cost and with results in less than 12 minutes at the point of care.
The transaction will drive LumiraDx’s pipeline of 30+ assays across common health conditions including infectious disease, cardiovascular disease, diabetes and coagulation disorders.
The company is headquartered in the UK with R&D and manufacturing centres in Scotland, England and the US; and sales and marketing operations across Western Europe, the US, Japan, South Africa, Colombia and Brazil. The company has more than 1,200 employees across 17 countries.
Recent success has been driven by its high sensitivity antigen test for COVID-19; developed on its platform and currently being used by the NHS and Boots in the UK, CVS Health in the US and A&E departments in Italy and other parts of Europe.
It is also being deployed in partnership with the Bill and Melinda Gates Foundation in a growing number of African countries where access to laboratory diagnostics is limited.
The LumiraDx platform and COVID-19 antigen tests are also available in Japan and Brazil and are being rolled out in more than 60 countries globally.
The platform is designed to go wherever the patient is, whether this is in a hospital, medical office, pharmacy, or in other non-traditional settings such as schools or airports.
Ron Zwanziger, chairman and CEO of LumiraDx, said: “LumiraDx is at the tipping point of driving a transformation in diagnostic testing. This new public recognition will solidify our already growing presence in the point of care testing market.
“COVID-19 has demonstrated how important it is to have rapid and highly accurate diagnostic tests, at mass scale, and available everywhere. It has validated the performance of our platform and enabled us to partner with governments, health systems, retail chains and other customers to expand testing across community care settings both in high and low-and middle-income countries.
“This access to increased testing will change the way care pathways are currently practiced, improving patient outcomes and saving human lives.”
Larry Neiterman, chairman and CEO of CA Healthcare Acquisition Corp, said: “LumiraDx’s next-generation point of care solutions provide a significant opportunity for our shareholders.
“Ron and his management team have decades of entrepreneurial success in innovative diagnostics businesses and the LumiraDx Platform and testing menu offer healthcare providers and other customers major advantages over traditional central labs.
“LumiraDx has a clear strategy for addressing the large and underpenetrated testing market to increase next-generation POC market share. In the near-term, demand for fast, low-cost COVID-19 tests is driving strong and transformational growth for LumiraDx’s solutions.”
Ron Zwanziger will continue to lead LumiraDx post-transaction. He and a core group of executives founded LumiraDx in 2014 after previously founding and growing a number of successful point-of-care diagnostic companies that were then sold to global healthcare companies for an aggregate consideration of more than US$10bn.
Later this year, subject to regulatory approval or clearance, LumiraDx also plans to launch Amira, a low-cost mass-screening and home testing system for COVID-19, which will support widespread efforts to safely reopen the economy.
LumiraDx anticipates the retail price of Amira will be US$2-4 per test, significantly lower than many existing COVID-19 tests currently on the market and estimates the incremental market opportunity at US$5-15bn.
The firm estimates 2021 revenue of US$600m – US$1bn driven by the LumiraDx platform usage, geographic expansion and Amira mass screening system.