Less than a year after going public, the company diagnoses Cue Health laid off 170 production workers.
The first day reported by STATCue said the layoffs reflect broader economic conditions, as well as the federal government’s recent move to fund transfers from COVID-19 testing to secure vaccines and treatments.
Diagnostic company best known for molecular COVID-19 testing at home, using a $250 reader and disposable test boxes, sends the results to a smartphone. When Cue goes public 200 million dollar IPOit details other diagnoses in final works that will be compatible with its reader, including tests for influenza, RSV (respiratory syncytial virus), and sexual health.
“We remain confident in our long-term strategy as we continue to expand the number of clients we serve and enhance our menu of care in the future, reinforcing our mission to improve improve the way health care is delivered by making it more efficient and timely, which ultimately leads to better outcomes for everyone’s health,” a spokesperson told MobiHealthNews.
TREND TO BIGGER
Founded in 2010, Cue has risen to prominence amid the COVID-19 pandemic. It closed a 100 million USD round of Series C in June 2020 to support its development and test validation, and has awarded $481 million from HHS and the Department of Defense to expand production in October of that year.
The company ended a $235 million funding round in May 2021 and go public in September. It posted revenue was $179.4 million in the first quarter of 2022, compared with $64.5 million in the first quarter of 2021. That still amounts to $2.8 million in net income, but it didn’t. down from $19.7 million in the previous quarter.
Cue has also expanded the scope of diagnostics, launch virtual health platform last year.
“The goal has always been to enable people to access the healthcare system, from home or wherever they are,” said Clint Sever, the company’s co-founder and chief product officer. MobiHealthNews at that time. “So the digital transformation of the healthcare system is still our mission. And I think this DTC [direct-to-consumer] Launching is an important first step in creating a larger vision. “
However, Cue is not alone when it comes to digital health layoffs in recent weeks. Virtual care unicorn Ro last week lay off 18% of its workforcewhile Carbon Health mix supplier give 250 workers in early June.