LumiraDx Announces Strategic Refocus and Cost Restructuring Program
April 06 2023 - 8:20AM
LumiraDx Limited (Nasdaq: LMDX), a leading global provider of
point-of-care diagnostics testing solutions, today announced its
Strategic Refocus and Cost Restructuring Program aimed at reducing
its scale and operations to pre-pandemic levels and to further
evolve LumiraDx into an agile organization with a clear focus on
the areas with the greatest potential.
The program is part of LumiraDx’s ongoing
efforts to streamline strategic focus and operations, optimize its
cost structure and position itself for sustainable growth in the
post-pandemic world. 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 United States through upcoming regulatory
submissions and prioritizing the development and launch of its high
sensitivity Troponin and Strep A Molecular tests.
Under the Cost Restructuring Program, LumiraDx
will further reduce its global workforce by approximately 40%,
including full-time, part-time and contractor positions. The
changes in workforce include adjusting to reduced Covid-related
production volumes and focusing on streamlining operations in
commercial and R&D activities while preserving core functions
for revenue generation. In addition to the headcount reductions,
LumiraDx will continue the implementation of operating cost
reductions. The Cost Restructuring Program is expected to result in
approximately $36 million in annualized savings, including the
impact of the anticipated increased incremental costs to be
incurred for US regulatory submissions, with the majority of
savings realized within the next four months.
“As we emerge from the pandemic, we are taking
decisive actions to strengthen our business and position ourselves
for long-term success,” said Ron Zwanziger, LumiraDx’s Founder and
CEO. “While we regret the impact this decision will have on our
affected employees, we are confident that these measures are
necessary to align our resources with our strategic priorities,
reduce costs and improve efficiencies.”
"After delivering on our prior cost reduction
programs that were implemented in 2022, the savings and operational
efficiencies generated through these new steps reinforce our
commitment to drive LumiraDx to profitable growth,"
shared Dorian LeBlanc, LumiraDx’s Chief Financial Officer.
“These necessary steps position LumiraDx to execute on our core
strategy of transforming community-based healthcare with our novel
microfluidic Platform with a specific focus on expanding our test
menu in key markets.”
About LumiraDx
LumiraDx Limited (Nasdaq: LMDX) is a
next-generation point of care diagnostics company that is
transforming community-based healthcare. Its actively controlled
microfluidic technology provides fast, high performance and
accessible diagnostic solutions wherever the patient is for nearly
any testing scenario, creating unique testing options at the point
of need.
The company offers a broad menu of lab
comparable tests on a single portable Platform, with more than 30
assays on the market and in the pipeline, covering infectious
diseases, cardiovascular diseases, diabetes, and coagulation
disorders. The company also supports high-complexity laboratory
testing in an accessible high-throughput format to leverage current
molecular laboratory operations.
Founded in 2014 and based in the UK, LumiraDx's
diagnostic testing solutions are being deployed globally by
governments and leading healthcare institutions across
laboratories, urgent care, physician offices, pharmacies, schools,
and workplaces to help screen, diagnose, and monitor wellness as
well as disease. More information on LumiraDx is available at
www.lumiradx.com.
Cautionary Note Regarding
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995, including statements regarding the
effectiveness of our strategy, the timing of commercial launch of
certain products, the benefits and performance of our tests, and
the expected timing and results of our cost-saving initiatives and
global restructuring activities. These statements involve risks,
uncertainties and other factors that may cause actual results,
levels of activity, performance or achievements to be materially
different from the information expressed or implied by these
forward-looking statements, including, among others, general
economic, political and business conditions; changes in interest
rates, inflation rates and global and domestic market conditions;
obtaining or maintaining regulatory approval, authorization or
clearance for our tests; and those factors discussed under the
header "Risk Factors" in our Annual Report on Form 20-F for the
year ended December 31, 2021, which was filed with the Securities
and Exchange Commission, or SEC on April 13, 2022, in our report on
Form 6-K that was filed with the SEC on August 16, 2022, and in
other filings that we make with the SEC. Although LumiraDx believes
that it has a reasonable basis for each forward-looking statement
contained in this press release, LumiraDx cautions you that these
statements are based on a combination of facts and factors
currently known by it and its projections of the future, about
which it cannot be certain. LumiraDx undertakes no obligation to
update or revise the information contained in this press release,
whether as a result of new information, future events or
circumstances or otherwise.
Contact
investors@lumiradx.com
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