LumiraDx Reports Third Quarter 2022 Results

Progress on Near-Term Growth Opportunities and Cost Savings

London, UK (November 9, 2022) - LumiraDx Limited (Nasdaq: LMDX), a next-generation point of care (POC) diagnostics company, today announced operational and financial results for the third quarter ended September 30, 2022.

  • Q3 2022 revenue of $42.2 million compared to Q2 2022 revenue of $44.7 million and Q3 2021 revenue of $109.1 million; strong position in a changing COVID testing market
  • Global restructuring plan on track with cost-saving initiatives implemented of $18 million per quarter
  • Commercializing newly CE marked products in Europe and international markets: HbA1c, NT-ProBNP, SARS-CoV-2 Ag Ultra, Ultra Pool, and SARS-CoV-2 & RSV combo
  • Diabetes test shipments commenced, planned rollout of heart failure test
  • Expansion of U.S. customer base continues, preparing clinical studies and 510(k) submission for SARS-CoV-2 Ag Ultra 5-minute test and SARS-CoV-2 & Flu combo

“We have made significant progress on expanding our portfolio of newly authorized products and have exciting commercialization priorities,” said LumiraDx Chairman and CEO Ron Zwanziger. “We are moving to commercialize our product portfolio in Europe and other international markets while actively working on U.S. submissions and preparing clinical trials this fall. We believe that we have a compelling value proposition with products designed to disrupt the point of care market and enable customers to consolidate three to six different instruments they are currently using into a single LumiraDx Platform. With lab comparable results in minutes for diabetes, heart failure, and coagulation disorders, we see an opportunity to do more testing in emergency rooms and primary care offices. We’re also accelerating the development of our Troponin and molecular assays on the Platform. We are confident these actions and strategic priorities for the next 12 to 18 months will bridge us toward key revenue milestones and support our strategy to transform community-based care.”

2022 Third Quarter Financial Highlights

The global restructuring plan to resize operations to current market requirements was fully implemented in the third quarter, and we have already implemented additional cost reductions to bring the expected savings to approximately $18 million per quarter. At the same time, we are making strategic use of resources to advance our near-term R&D pipeline of assays for common health conditions and commercialize new products to drive revenue growth.

For the three months ended September 30, 2022, LumiraDx delivered revenue of $42.2 million compared to $109.1 million for the third quarter of 2021. Platform test strip revenues were $26.9 million, and sales of instruments, accessories and other items related to our point of care Platform were $1.7 million. Our Fast Labs revenues were $9.0 million in the third quarter of 2022. Substantially all of the revenues for test strips and Fast Labs were derived from our COVID-19 products.

LumiraDx’s COVID products are recognized for their significant performance and cost advantages over competing POC options. As the overall market for COVID testing has dropped, we have retained revenue through expansion of customer sites and use cases in key markets including the U.S., U.K., Italy and Japan.

Total gross margins for the third quarter of 2022 were 20% compared to 11% in the second quarter of 2022 and 36% in the third quarter of last year. Inventory reserves of $9 million related primarily to COVID testing materials negatively impacted gross margins in the quarter.

The impact of our global restructuring program is expected to reduce fixed manufacturing costs in the fourth quarter of this year.

Research and development expenses were $31.3 million in the third quarter of 2022. Our non- IFRS R&D expenses in the third quarter of 2022 were $29.2 million, a decrease of 35% from the second quarter of this year. We have prioritized R&D spend to focus on our near-term pipeline and U.S. 510(k) submissions for the back half of 2022 and into next year.

Third quarter 2022 sales, marketing and administrative expenses were $35.3 million.  Adjusted non-IFRS sales, marketing and administrative expenses, excluding amortization and share- based payment expenses, were $27.9 million in the third quarter of 2022 as compared with $23.8 million for the same period last year. Third quarter 2022 non-IFRS SG&A represents a 10% decrease compared to the second quarter of 2022, due to currency translation effects of a strong U.S. dollar and the partial period impact of our global restructuring program.

Operating loss for the third quarter of 2022 was $57.9 million compared with a $55.5 million loss for the same period last year. Third quarter 2022 non-IFRS operating loss of $47.9 million improved $22.6 million from a second quarter of 2022 non-IFRS operating loss of $70.5 million. We expect our global restructuring efforts will continue to support this improving trend as we focus strongly on our cash position.

Conference Call

LumiraDx’s senior management team will host a conference call today at 8:00 AM ET to discuss the company’s financial results and business updates. Call in details and a link to view the webcast may be found at investors.lumiradx.com/news-and-events/investor-calendar. A replay of the webcast will be available on the Investors section of the company's website at investors.lumiradx.com shortly after the conclusion of the call. The webcast will be archived for one year.

About LumiraDx

LumiraDx Limited (Nasdaq: LMDX) is next-generation point of care diagnostics company that is transforming community-based healthcare. Its actively controlled microfluidic technology provides fast, high performance and accessible diagnostic solutions wherever the patient is for nearly any testing scenario, creating unique testing options at the point of need. The company offers a broad menu of lab comparable tests on a single portable Platform, with more than 30 assays on the market and in the pipeline, covering infectious diseases, cardiovascular diseases, diabetes, and coagulation disorders. The company also supports high-complexity laboratory testing in an accessible high-throughput format to leverage current molecular laboratory operations.

Founded in 2014 and based in the UK, LumiraDx's diagnostic testing solutions are being deployed globally by governments and leading healthcare institutions across laboratories, urgent care, physician offices, pharmacies, schools, and workplaces to help screen, diagnose, and monitor wellness as well as disease.

More information on LumiraDx is available at www.lumiradx.com.

Contact:

Colleen McMillen
Colleen.McMillen@lumiradx.com
+1.917.344.9360

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding the effectiveness of our strategy, regulatory progress and the advancement of our pipeline of tests, the timing and results of our clinical trials, the timing of commercial launch of certain products, the benefits and performance of our tests, and the expected timing and results of our cost-saving initiatives and global restructuring activities. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements, including, among others, general economic, political and business conditions; the effect of COVID-19 on LumiraDx's business and financial results; obtaining or maintaining regulatory approval, authorization or clearance for our tests; and those factors discussed under the header "Risk Factors" in our Annual Report on Form 20-F for the year ended December 31, 2021,which was filed with the Securities and Exchange Commission, or SEC on April 13, 2022, in our report on Form 6-K that was filed with the SEC on August 16, 2022, and in other filings that we make with the SEC. Although LumiraDx believes that it has a reasonable basis for each forward- looking statement contained in this press release, LumiraDx cautions you that these statements are based on a combination of facts and factors currently known by it and its projections of the future, about which it cannot be certain. LumiraDx undertakes no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise.

Non-IFRS Financial Measures

We present non-IFRS financial measures because we believe that they and other similar measures are widely used by certain investors, securities analysts and other interested parties as supplemental measures of performance and liquidity. We also use these measures internally to establish forecasts, budgets and operational goals to manage and monitor our business, as well as evaluate our underlying historical performance, as we believe that these non-IFRS financial measures depict the true performance of the business by encompassing only relevant and controllable events, enabling us to evaluate and plan more effectively for the future. The non-IFRS financial measures may not be comparable to other similarly titled measures of other companies and have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our operating results as reported under IFRS as issued by the IASB. Non-IFRS financial measures and margins are not measurements of our performance, financial condition or liquidity under IFRS as issued by the IASB and should not be considered as alternatives to operating loss, gross margin or net income (loss) or any other performance measures, derived in accordance with IFRS as issued by the IASB or any other generally accepted accounting principles.

We define non-IFRS operating loss and non-IFRS net income (loss) as operating loss and net income (loss), respectively, excluding amortization, share-based payments, IFRS 2 listing expense, change in fair value of financial instruments, foreign exchange (gain)/loss, dividends on preferred shares and non-cash interest. We define non-IFRS expenses as expenses excluding amortization and share-based payments. We recommend that you review the reconciliation of the non-IFRS measure to the most directly comparable IFRS financial measure provided in the financial statement tables included below, and that you not rely on any single financial measure to evaluate our business.

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