- Lumos Diagnostics (LDX) is closing its operations facility in Sarasota, Florida
- The decision reflects the company’s goal to reduce spending and improve operating cashflow
- Lumos, who specialises in point-of-care diagnostic testing, announced having 1.7 quarters left of available funding and is seeking financing options as well as implementing cost reduction measures
- The company has already begun winding up operations at the Sarasota facility and expects to complete this process either in late September or early October
- LDX shares end the day trading 5.66 per cent in the red at five cents
Healthcare company Lumos Diagnostics (LDX) is closing its operations facility in Sarasota, Florida.
The decision reportedly comes at a time when the company is focused on reducing future commitments to spending.
In its June quarterly report, Lumos saw an operating cash outflow of $4.6 million and a further $78,000 was spent on investing activities.
After generating around $6.7 million from financing activities, the company had just shy of $8 million in cash but less than two quarters of available funding.
When addressing this in the June quarterly, Lumos stated it’s aiming to improve net operating cashflow from cost reduction measures and, in addition to cost-cutting and rightsizing, it proposes to explore additional financing options.
“In the current market, Lumos clearly has to be very mindful of its planned cash expenditure and capital investment commitments,” CEO Doug Ward said.
“In conjunction with the board, we are looking at all aspects of Lumos’ operations to ensure that our investment and expenditure is closely aligned with achieving commercial outcomes.”
The company has already begun winding up operations at the Sarasota facility and expects to complete this process either in late September or early October.
While the closure is expected to be almost cost-neutral, it will reduce the cash burn for Lumos by eliminating ongoing leasing and operating costs associated with the Sarasota site.
“Even as we build out our pipeline with new Commercial Services customers, I am confident that our Carlsbad facility has sufficient capabilities and capacity to meet our near term needs for our growing business,” Mr Ward added.
Lumos Diagnostics specialises in cost-effective and complete point-of-care diagnostic test technology to help healthcare professionals more accurately diagnose and manage medical conditions.
LDX shares ended the day trading 5.66 per cent in the red at five cents.