Dwindling COVID-19 Test Demand Forces LumiraDx Cut SPAC Deal Value

Author: Vandana Singh | August 20, 2021 01:43pm

Fall in demand for COVID-19 screening has led LumiraDx to slash $2 billion off the value of a planned reverse merger with a special purpose acquisition company (SPAC).
See: LumiraDx Withdraws $100M IPO In Favor Of $5B SPAC Merger.
First announced in April, the U.K.-based diagnostics company aimed to debut on NASDAQ with the blank-check firm CA Healthcare Acquisition Corp (NASDAQ:CAHC) and had charted out a $5 billion pro forma enterprise value for the combination.
Now LumiraDx is knocking 40% off that projected valuation while also saying that the market environment for publicly traded diagnostic companies has changed and is following feedback from the SPAC’s advisors and shareholders.
LumiraDx also reduced its revenue guidance for 2021, from the $600 million to $1 billion it had been forecasting in April, down to $300 million to $500 million by the end of this year.
Related: LumiraDX COVID-19 Antibody Test Received FDA Emergency Use Nod.
Price Action: CAHC shares are up 0.29% at $9.90 during the market session on the last check Friday.