Revamping LumiraDx: New Strategic Focus And Cost-Saving Initiatives Announced

LumiraDx Limited LMDX announced its strategic refocus and cost restructuring program to reduce its scale and operations to pre-pandemic levels.
In the Q2 earnings release, LumiraDx initiated a restructuring plan to reduce overall operating costs and deprioritize certain R&D activities for earlier-stage programs amid lower COVID testing activity.
The restructuring will enable LumiraDx to focus its resources on key strategic priorities, including commercializing the existing product portfolio, expanding its product offerings in the U.S. through upcoming regulatory submissions, and prioritizing the development and launch of its high-sensitivity Troponin and Strep A Molecular tests.
LumiraDx will further reduce its global workforce by approximately 40%, as well as continue the implementation of operating cost reductions.
The cost restructuring program will result in approximately $36 million in annualized savings.
For FY22, LumiraDx delivered revenue of $254.5 million compared to $421.4 million a year ago.
The company recorded an accounting impairment of $96 million in Q4 FY22 for excess manufacturing and inventory related to the scale-up during peak COVID testing demand and the decision to pause commercialization of the Amira COVID test.
Adjusted EPS loss increased to $(0.75) from $(0.68) a year ago.
In February, the FDA and U.K. Health Security Agency granted an Emergency Use Authorization for the LumiraDx SARS-CoV-2 & Flu A/B STAR Complete assay.
Price Action: LMDX shares are up 9.09% at $0.60 on the last check Thursday.

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