A Melbourne biotech has axed plans to build a Victorian manufacturing plant for rapid antigen tests after the company told the state government it doesn’t have the resources to commit to the plan.
Lumos Diagnostics, which listed on the ASX last year, was planning to set up a $17.2 million facility to make diagnostic tests, with funding support from the Victorian government.
The Lumos Diagnostics FebriDx tool works to distinguish between viral and bacterial infections.
On Monday, the business told investors it was pulling the pin on the proposal, saying it did not have the capital investment or human resources to set up the facility.
“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,” chief executive Doug Ward said.
Lumos is developing a COVID-19 rapid test and makes a tool that lets doctors work out whether an infection is bacterial or viral, enabling them to decide whether a patient needs antibiotics.
A Victorian government spokesperson said that it agreed to a partnership for the manufacturing hub, but the agreement was contingent on Lumos getting approval from the Therapeutic Goods Administration for its COVID self-test in Australia.
“Lumos Diagnostics has now withdrawn its application from the TGA,” the spokesperson said.
“No funding was provided by the Victorian government to Lumos Diagnostics as the agreement was contingent on TGA approval.”
The government said it would continue to expand local medical technology manufacturing and work with companies such as Moderna, which is building an mRNA vaccine hub that is set to launch in Melbourne in 2024.