LumiraDx slashes takeover price, citing a slowdown in COVID testing
London-based LumiraDx has slashed $2 billion off the size of a proposed takeover by a SPAC, citing decreases in COVID-19 testing volume.
Why it matters: The move tracks with reduced sales forecasts by industry giants like Abbott and Quest Diagnostics, but also feels like it's on a bit of a lag.
- On April 7, the day LumiraDx first announced what was supposed to be a $5 billion deal, there were 1.2 million coronavirus tests conducted in the U.S., per Johns Hopkins University data,
- That number bottomed out in the 150k range in early July, but has since rebounded, topping 2 million U.S. tests on Aug. 16.