Brisbane biotech firm Ellume puts Australian arm into administration
Ellume's rapid home test kit for COVID-19 has been sold to the US Department of Defense. (ABC News: Jessica Rendall)
The Australian arm of a Brisbane-based biotech company that struck a $300 million deal to send COVID-19 home testing kits to the US has gone into voluntary administration.
A meeting of Ellume's creditors is to be held later this month. Ellume's US business is not affected.
Ellume rose to prominence last year when it signed an agreement with the US Department of Defense to provide COVID home test kits.
Last October, the company hit a hurdle when some of the test kits were recalled in the US after an increase in false-positives.
At the time, Ellume said an estimated 190,000 of the 3.5 million tests shipped to the US had been recalled.
It is not yet clear whether the recall has played any part in the decision to place the company into administration.
FTI Consulting's John Park said he and Joanne Dunne were appointed to "maximise the chances of Ellume exiting administration process in an orderly fashion".
"The administrators intend to trade the company on a business-as-usual basis, while we conduct an independent assessment of the financial position and ongoing viability of the business," Mr Park said.
CEO and founder of Ellume Dr Sean Parsons (left) at their Brisbane laboratory. (ABC News: Jessica Rendall)
Ellume CEO and founder Dr Sean Parsons said the aim of the company was to "spark a revolution in the way infectious diseases are diagnosed".
"I am incredibly proud of Ellume's achievements in what has been an unprecedented, challenging, and dynamic time," he said.
"We are entering into a voluntary administration process for the Australian business to help determine the best course of action to secure and strengthen a future for Ellume."
The company has also received state government funding.
[Qld local edition teaser]In January last year, State Development Minister Steven Miles confirmed the government provided funding to Ellume from the state's Essential Goods and Supply Chain program.
"This funding will allow Ellume to increase manufacturing of its suite of rapid testing kits at its new facility in Richlands," Mr Miles said at the time.
He described the testing kits developed by Ellume as "world-leading and life-saving diagnostic testing technology".
More than 300 employees were working at Ellume's Richlands production laboratory, Mr Miles said last year.