Ellume, started by doctor Sean Parsons, collapsed earlier this year after its attempts to crack the US market with an over-the-counter Covid test kit crashed when it faced a damaging recall and the US Government began issuing test kits for free.

Losses were about $100 million.

The offer was made about two weeks ago, but was only voted on yesterday. Significantly, Ellume’s noteholders could continue to remain invested in the business.

The Gold Coast based Hough is a medical supply company and operates a diagnostic business that distributes rapid antigen tests. Among its plans was to continue manufacturing in Australia and the US, according to chief executive Jackson Hough.

Jackson Hough said the company intended to rapidly expand Ellume’s products and secure approvals in Australia and the US for multiple diagnostics platforms in the self-testing and point-of-care markets.

He said in March the company would launch its first range of self-test rapid diagnostic test kits through supermarkets and pharmacies.

The initial range of six tests would be expanded to more than 10 different diagnostics covering women’s health, male fertility and sexually transmitted diseases by the end of 2023.

“The team at Hough believe the opportunity now is for rapid diagnostics to move beyond Covid-19, as a cheaper, faster tool for disease screening across the Australian and global health landscape,” Hough said.

“From at-home testing for common conditions to point-of-care screening for life-threatening respiratory diseases, rare cancers, heart disease and auto-immune disorders, rapid diagnostics have the power to increase early diagnosis, deliver faster treatment and better health outcomes.

“The partnership between Ellume and Hough will see Australian know-how and research lead the way.”

A deed of arrangement was expected to be completed this week and the deal finalised by mid-March.