Roche to buy part of LumiraDx diagnostics platform for $295 million

(Reuters) - Swiss drugmaker Roche said on Friday it has agreed to buy LumiraDx's Point of Care diagnostics platform business for about $295 million.

Shares of LumiraDx rose about 20%, to 76 cents in aftermarket trading.

The transaction is expected to close by mid-2024, after which the acquired segment will become a part of Roche's diagnostics unit, the drugmaker said.

Under the terms of the agreement, Roche will pay a purchase price of $295 million at the close of the transaction. It will additionally pay up to $55 million in reimbursements to fund the platform until the deal closes.

LumiraDx said the sale's proceeds would not be distributed to its shareholders, but would be used to repay some of its debt.

The acquired technology unit, Point of Care, offers a range of immunoassay and clinical chemistry tests on a single platform.

Separately, LumiraDx also appointed Andrew Johnson, Lisa Rickelton and Lindsay Hallam of FTI Consulting as joint administrators of two of its subsidiaries, LumiraDx Group Limited and LumiraDx International Limited, on Friday.

The appointments and the sale to Roche represent the culmination of the company's previously announced strategic review process.

(Reporting by Sriparna Roy in Bengaluru; Editing by Pooja Desai)