Roche to buy part of LumiraDx diagnostics platform for $295 million

LumiraDx

29/12/2023 23:21

Dec 29 (Reuters) - Swiss drugmaker Roche  ROG.S  said on
Friday it has agreed to buy LumiraDx's  LMDX.O  Point of Care
diagnostics platform business for about $295 million. 
    Shares of LumiraDx rose about 20%, to 76 cents in
aftermarket trading.
    The transaction is expected to close by mid-2024, after
which the acquired segment will become a part of Roche's
diagnostics unit, the drugmaker said.
    Under the terms of the agreement, Roche will pay a purchase
price of $295 million at the close of the transaction. It will
additionally pay up to $55 million in reimbursements to fund the
platform until the deal closes.
   LumiraDx said the sale's proceeds would not be distributed to
its shareholders, but would be used to repay some of its debt.
    The acquired technology unit, Point of Care, offers a range
of immunoassay and clinical chemistry tests on a single
platform.
   Separately, LumiraDx also appointed Andrew Johnson, Lisa
Rickelton and Lindsay Hallam of FTI Consulting as joint
administrators of two of its subsidiaries, LumiraDx Group
Limited and LumiraDx International Limited, on Friday.
    The appointments and the sale to Roche represent the
culmination of the company's previously announced strategic
review process.

 (Reporting by Sriparna Roy in Bengaluru; Editing by Pooja
Desai)
 ((Sriparna.Roy@thomsonreuters.com;))