An ASX-listed diagnostics firm has backed out of a Victorian government deal to build a rapid antigen test manufacturing plant in Melbourne.
In February, the state government announced Lumos Diagnostics and Planet Innovation would establish a plant in Melbourne to make the tests with support from the state’s investment fund.
RATs were in scant supply at the time amid the nation’s first Omicron wave, and the plant was slated to produce a million tests monthly from April, three million from July and up to 50 million tests a year from October.
In a statement, Lumos said it had advised the government it won’t go ahead with the plant after the company’s board determined it cannot commit the funding and human resources needed to support its establishment within the specified time frames.
“Lumos is paying close attention to its operational priorities and investment commitments as evidenced by the recent announcement regarding the planned closure our Sarasota facility,” chief executive Doug Ward told shareholders.
“While we continue to see great potential for establishing a diagnostics capability in Victoria, at this time Lumos needs to focus on leveraging its existing assets rather than investing in new assets.”
The Victorian government has been contacted for a response.
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