UK-based diagnostic testing firm LumiraDx and special purpose acquisition company (SPAC) CA Healthcare Acquisition (CAHC) have announced the slashing of merger deal value by 40% to $3bn.

In April this year, the next-generation point of care (POC) diagnostics testing firm entered into a merger with CAHC in a deal worth $5bn.

The revised terms were based on various considerations, including the recent market conditions of publicly traded diagnostic companies, general market declines in Covid-19 testing volumes, and feedback from CA Healthcare advisors and shareholders,

LumiraDx chairman and CEO Ron Zwanziger said: “LumiraDx is at the tipping point of driving a transformation in diagnostic testing. We are growing our presence in the point of care testing market across cardiovascular disease, diabetes, coagulation disorders and infectious disease and have a strong pipeline and go-to-market strategy for driving growth over the coming years.”

Established in 2014, LumiraDx is involved in the development, manufacturing and commercialisation of advanced point of care diagnostic platform.

The company supplies its diagnostic testing solutions to governments and healthcare institutions across laboratories, urgent care, physician offices, pharmacy, schools, and workplaces to screen, diagnose and monitor wellness as well as disease.

Its portfolio includes more than 30 tests that cover infectious diseases, cardiovascular disease, diabetes and coagulation disorders.

CAHC chairman and CEO Larry Neiterman said: “Ron and his management team have decades of entrepreneurial success in innovative diagnostics businesses and the LumiraDx Platform and testing menu offer healthcare providers and other customer’s major advantages over traditional central labs.”

Subject to approval by the security holders of each of CAHC and LumiraDx as well as the satisfaction of customary closing conditions, the deal is expected to be completed in the fall of this year.

As per the earlier announcement, the combined group is expected to receive up to $115m of cash held in trust.