Within Two Years Of Public Debut, COVID-19 Test Maker Files For Bankruptcy
Lucira Health Inc (NASDAQ: LHDX) filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.
The company further disclosed that it intends to pursue a sale of its business under Section 363 of the Bankruptcy Code while continuing to support its customers during the process.
Lucira Health snowballed over the past several years amid the COVID-19 pandemic. Demand for the company's COVID-19 test kits surged, and it posted positive net income in its 2022 first quarter for the first time since its inception.
The company anticipated an Emergency Use Authorization for an OTC indication on the COVID-19 and Flu test in August 2022. However, the FDA's approval process became protracted, resulting in high expenditures without new revenue from the combined test kit during the 2022-2023 flu season.
Last month, Lucira Health submitted a EUA application to the FDA for OTC use of its simple, at-home molecular COVID-19 & Flu test.
Lucira's test for COVID-19 & Flu was granted Emergency Use Authorization for Point-of-Care (POC) use in a healthcare setting in November 2022.
In October 2022, Lucira's Board of Directors approved various initiatives to rebalance its cost structure and explore strategic alternatives.
In 2021, Lucira Health launched an upsized IPO of 9 million shares at $17 per share for expected gross proceeds of $153 million.
Price Action: LHDX shares are down 36.30% at $0.15 during the premarket session on the last check Thursday.
Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.
This article Within Two Years Of Public Debut, COVID-19 Test Maker Files For Bankruptcy originally appeared on Benzinga.com
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.