A SPAC for…Testing, Testing

It was only a matter of time before we talked about COVID and SPACs. Thanks to the recent announcement that the U.K.-based LuminaDX, a producer of COVID-19 tests, is merging with CA Healthcare Acquisition Corp., that time has come. 

LuminaDX warrants trade under the ticker CAHCW.

According to data compiled by Bloomberg, this is the largest healthcare company SPAC deal in the past year. The companies’ press release states the value of the combined company is approximately $5 billion. 

LuminaDX is a relatively young company, founded in 2014. Among its backers is the Bill & Melinda Gates Foundation. 

LiminaDX produces portable diagnostic machines that provide lab-comparable results in minutes–all done at the point of care. No need to send samples off to the lab and wait for results. Think of the medical tricorder on Star Trek, and you’ve got the idea.

Among the tests provided by the LuminaDX Platform is, you guessed it, a COVID-19 test. This resulted in units getting into the field in such places as CVS faster than likely would have happened otherwise. More than 13,000 instruments have been shipped to over 60 countries since September 2020. 

This also resulted in a corresponding jump in revenue–no surprise there. 

Other test options include diabetes, cardiovascular, and infectious diseases. The company is also working on a device called Amira for personal, low-cost at-home testing. 

In the press release announcing the merger, LuminaDX estimates its revenue this year will be $600 million to $1 billion, driven by Amira, the LuminaDX Platform, and geographic expansion.