Lower COVID-19 Testing Revenues Hit LumiraDx Q2, Plans Cost Cutting Initiatives

Vandana Singh
1 min read
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In this article:

  • LumiraDx Limited's (NASDAQ: LMDX) Q2 FY22 sales reached $44.7 million compared to Q1 2022 revenue of $126.4 million and Q2 2021 revenue of $87.2 million, as COVID-19 moves from pandemic to the endemic stage.

  • The analysts estimated sales of $53.09 million.

  • Test strips on the LumiraDx Platform contributed revenues of $28 million, and Fast Lab Solutions' molecular reagents delivered $10 million, substantially from COVID-19 products.

  • In response to lower COVID testing activity and to ensure efficient use of cash, LumiraDx initiated a restructuring plan to reduce overall operating costs and deprioritize certain R&D activities for earlier stage programs.

  • The gross margin was 11% compared to 17% a year ago, primarily due to under-absorbed manufacturing capacity as the company transitions from a higher cost base and resizes operations.

  • The company posted an adjusted EPS loss of $(0.31) versus $(0.40) a year ago and missed the consensus of $(0.26).

  • Lumira closed Q2 with a proforma cash balance of $206 million.

  • The company said it is working on FDA 510K submission for the SARS-CoV-2 Ag Ultra 5-minute test, with clinical trials planned for a broader respiratory portfolio this year.

  • Price Action: LMDX shares are down 4.67% at $1.43 on the last check Thursday.

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