Skip to main content
Premium Trial:

Request an Annual Quote

LumiraDx, CA Healthcare Acquisition Revise Merger Terms to Lower Equity Value of Combined Company

NEW YORK — Point-of-care diagnostics firm LumiraDx and special purpose acquisition company CA Healthcare Acquisition said on Monday that they have revised the terms of their previously announced merger to lower the equity value of the combined company.

London-based LumiraDx also lowered its full-year 2021 revenue estimates by up to 70 percent.

The change in the merger terms, which lowers the pro forma enterprise value of post-merger LumiraDx to $3 billion from $5 billion, is expected to make the company more attractive to investors, the companies said.

In April, CAHC said it had agreed to merge with LumiraDx in a deal that would facilitate LumiraDx's listing on the Nasdaq under the ticker symbol LMDX. Boston-based CAHC had previously floated its shares on the Nasdaq, raising $115 million in an initial public offering.

The new $3 billion valuation for post-merger LumiraDx excludes the $115 million in cash that CAHC is holding in trust, which will become available to the combined company. Current LumiraDx shareholders will retain the entirety of their existing holdings in LumiraDx, as specified under the merger's original terms.

The transaction is slated to close in the fall.

"Today's announcement reflects our commitment to delivering significant upside potential and long-term value for both our current CAHC shareholders as well as future shareholders of LumiraDx," Ron Zwanziger, LumiraDx chairman and CEO, said in a statement.

LumiraDx is developing a pipeline of tests that includes more than 30 assays for health conditions that include infectious disease, cardiovascular disease, diabetes, and coagulation disorders. The company also offers a range of SARS-CoV-2 tests with US Food and Drug Administration Emergency Use Authorizations.

LumiraDx expects to receive clearances for 10 tests over the next two years including ones for influenza/COVID-19, tuberculosis, and troponin. The company recently updated its 2021 revenue guidance to the $300 million to $500 million range and said it expects 2024 revenues in the range of $1 billion to $1.25 billion.

In April when LumiraDx announced its plans to go public through the SPAC mechanism, it said 2021 revenues were expected to be between $600 million and $1 billion.

The Scan

Team Tracks Down Potential Blood Plasma Markers Linked to Heart Failure in Atrial Fibrillation Patients

Researchers in BMC Genomics found 10 differentially expressed proteins or metabolites that marked atrial fibrillation with heart failure cases.

Study Points to Synonymous Mutation Effects on E. Coli Enzyme Activity

Researchers in Nature Chemistry saw signs of enzyme activity shifts in the presence of synonymous mutations in a multiscale modeling analysis of three Escherichia coli genes.

Team Outlines Paternal Sample-Free Single-Gene Approach for Non-Invasive Prenatal Screening

With data for nearly 9,200 pregnant individuals, researchers in Genetics in Medicine demonstrate the feasibility of their carrier screening and reflex single-gene non-invasive prenatal screening approach.

Germline-Targeting HIV Vaccine Shows Promise in Phase I Trial

A National Institutes of Health-led team reports in Science that a broadly neutralizing antibody HIV vaccine induced bnAb precursors in 97 percent of those given the vaccine.