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.
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