Thursday, May 23, 2024

Difficult World for POCT: Cue Health Lays Off Everyone

According to Genomeweb, quoting San Diego Union-Tribune, Cue Health is shuttering all operations and laying off all remaining employees.  Here.

It's remarkable in light of its recent past history.  According to Tracxn, the company was founded in 2010 and raised $406M, including a $235M Series D in May 2021.   Just months later, in September 2021, its IPO brought in $200M at a $2B valuation, per MobiHealthNews and Fierce Biotech.

From September 2021 to yesterday, share price was down from $19 to 8 cents.  (It was $1 a year ago, in May 2023).  

Due to COVID testing, total revenue fell from $615M in 2021, to $474M in 2022, to $64M in 2023.  Pretax income peaked at $120M in 2021, falling to -$368M last year in 2023.

As sales tumbled in 2022/2023, costs were $450M direct costs of revenue, and another $550M in operating expenses, which includes their $320M in R&D in 2022/2023.


See my January 2024 white paper on valuation of genomics investments, here.