Lumos Diagnostics (ASX:LDX) has announced that has advised the Victorian government that it is withdrawing from the development of its previously announced plan to participate in the development of a diagnostic manufacturing facility in the state.
The company said the decision is part of its ongoing restructuring and rationalisation program.
In February 2022, Lumos announced that the Victorian state government had proposed a package of support for a Rapid Antigen Test (RAT) manufacturing facility in the state.
However, the company says its CEO Doug Ward and board have determined that it is not currently in a position where it can commit to providing the capital investment and human resources required to support the establishment of such a facility within the intended timeframes.
“Lumos is paying close attention to its operational priorities and investment commitments as evidenced by the recent announcement regarding the planned closure our Sarasota facility,” said Mr Ward.
“While we continue to see great potential for establishing a diagnostics capability in Victoria, at this time Lumos needs to focus on leveraging its existing assets rather than investing in new assets. Lumos is currently concentrating on securing regulatory clearances to drive commercial sales revenue from its portfolio of point-of-care diagnostics products, and on leveraging its reader technology and established development services and manufacturing capability in Carlsbad, to grow its Commercial Services business.”
A spokesman for the Victorian government said the plan announced in February was always contingent on the company securing TGA approval for its COVID-19 test. The company recently withdrew its submission to the regulator.