Lower than a 12 months after it went public, diagnostics firm Cue Well being has laid off 170 manufacturing staff.
First reported by STAT, Cue mentioned the layoffs mirrored bigger financial situations, in addition to the federal authorities’s latest transfer to divert funding from COVID-19 testing to safe vaccines and coverings.
The diagnostics firm is finest recognized for its at-home molecular COVID-19 take a look at, which makes use of a $250 reader and single-use take a look at cartridges, sending outcomes to a smartphone. When Cue went public in its $200 million IPO, it detailed different diagnostics within the works that will ultimately be appropriate with its reader, together with assessments for flu, RSV (respiratory syncytial virus) and sexual well being.
“We stay assured in our long-term technique as we proceed to broaden the variety of prospects we serve and advance our menu of future care choices, reinforcing our mission to enhance how healthcare is delivered by making it extra environment friendly and well timed, finally main to higher outcomes for folks’s well being,” a spokesperson informed MobiHealthNews.
THE LARGER TREND
Based in 2010, Cue rocketed to prominence within the midst of the COVID-19 pandemic. It closed a $100 million Sequence C spherical in June 2020 to help the event and validation of its take a look at, and was awarded $481 million from HHS and the Division of Protection to increase manufacturing in October that 12 months.
The corporate wrapped up a $235 million financing spherical in Might 2021 and hit the general public markets in September. It posted income of $179.4 million within the first quarter of 2022, in comparison with $64.5 million within the first quarter of 2021. That also amounted to $2.8 million in internet revenue, however it dipped in contrast with $19.7 million through the prior 12 months quarter.
Cue has additionally expanded out of diagnostics, launching a digital well being platform late final 12 months.
“The objective is all the time enabling anybody to entry the healthcare system, from dwelling or wherever they’re. To make that extraordinarily simple, to deliver the healthcare system to you,” the corporate’s cofounder and chief product officer Clint Sever informed MobiHealthNews on the time. “In order that digital transformation of the healthcare system stays our mission. And I believe this DTC [direct-to-consumer] launch is the primary main step in enabling that bigger imaginative and prescient.”
Nonetheless, Cue is not alone with regards to digital well being layoffs in latest weeks. Digital care unicorn Ro final week laid off 18% of its workforce, whereas hybrid supplier Carbon Well being let go of 250 staff in early June.