Australian biotechnology success that “revolutionized” Covid tests and a $300 million contract with Joe Biden enter voluntary administration.
Ellume Limited of Brisbane enters into voluntary administration.
The business struggled with false-positive RATS and stock recalls.
Ellume was the first manufacturer of rapid antigen testing (RATs) for the United States.
FTI Consulting has appointed John Park and Joanne Dunn as voluntary administrators.
2,2 million DIY Covid tests were recalled by the firm in November 2021.
Due to growing worries that testing would give false-positive results.
Despite being the first company from Down Under to ship quick antigen tests to the United States, an Australian biotech success story that “revolutionized the way infectious diseases are detected” has entered voluntary administration.
Ellume Limited, a firm based in Brisbane, announced on Thursday that it was placing its Australian arm into administration in order to determine “the best way to secure the business’s future.”
Ellume USA LLC in the United States has not entered voluntary administration and will continue to operate normally.
FTI Consulting’s John Park and Joanne Dunn will conduct the voluntary administration procedure.
Mr. Park stated that the administrators will attempt to increase the likelihood of Ellume’s smooth withdrawal from administration.
“The administrators aim to operate business as usual while we perform an impartial assessment of the company’s financial status and continued viability.”
When the business signed a contract with the government of US President Joe Biden in February 2021 to supply 8.5 million rapid antigen tests (RATs) abroad, it earned $300 million.
However, the company has experienced difficulties in recent years, including a global recall in 2021 because the accuracy of its Covid home testing was questioned.
In February 2021, the Brisbane-based company Ellume Limited, which was the first to deploy rapid antigen testing (RATs) to the United States, signed a $300 million contract.
In November, Ellume Limited was compelled to recall over two million RATs off shelves in the United States after regulators discovered that the tests occasionally produced false positives.
The order issued by the US Food and Drug Administration was a Class I recall, the agency’s most severe level.
Ellume recalled about 200,000 of its Covid home tests in October due to distinct worries that they could produce false-positive results due to a recently identified manufacturing defect.
Dr. Sean Parsons, CEO and founder of Ellume, was proud that the company has always been a pioneer in medical technology.
He stated, “We set out to revolutionize how infectious diseases are detected.”
I am really proud of Ellume’s accomplishments during this unique, demanding, and dynamic period.
“We are launching a voluntary administration procedure for the Australian business in order to assess the best way to secure and strengthen Ellume’s future.”
Dr. Sean Parsons, CEO and founder of Ellume, stated, “We are starting a voluntary administration process for the Australian firm to assess the best course of action to secure and strengthen Ellume’s future.”
Mid-September will see the convening of a conference of creditors.
Ellume Limited was once valued at over $500 million.
Dr. Parsons previously stated that he was ecstatic to bring Ellume fast antigen tests to the United States when the Food and Drug Administration granted emergency approval.
He stated, “We’ve been developing this technology for a decade.”
This is an element of the puzzle. It does not replace masks, nor does it replace vaccinations. It’s another piece of the responsive puzzle needed to get America back on its feet.