Thursday, February 23, 2023

Covid Test Maker Lucira Goes Bankrupt as Demand for Kits Wanes



Amelia Pollard
Wed, February 22, 2023 

(Bloomberg) -- Lucira Health Inc., a publicly traded maker of at-home Covid-19 tests, filed for Chapter 11 bankruptcy on Wednesday.

California-based Lucira listed assets of about $146 million and liabilities of about $85 million in its bankruptcy petition. The company will keep operating during bankruptcy as it seeks to sell itself, according to a statement.

Lucira sells an at-home Covid test that provides “lab-quality results” in 30 minutes, according to its website. A single test is listed for $35 on the site.

Declining Covid-19 restrictions crimped demand for the tests, squeezing Lucira, Chief Executive Officer Erik Engelson said in the statement. Slower-than-expected regulatory approval for a flu test kit also hurt the company, he said.

Venture capital firm Eclipse Ventures holds about a 10% stake in Lucira, making it the company’s biggest shareholder, court papers show.

The case is Lucira Health, Inc., 23-10242, U.S. Bankruptcy Court for the District of Delaware.



No comments: