Cue Health Inc.
Defunct maker of portable at-home molecular COVID-19 test devices, liquidated 2024.
On the record
Checkpoint: Bankruptcy trustee's final report on disposition of FDA-cleared IP and hardware assets
The call
Cue Health's portable testing business no longer exists; it liquidated in 2024 after pandemic demand vanished and an FDA warning letter forced product discard.
Cue Health made rapid COVID tests that hospitals and governments bought during the pandemic. The company depended almost entirely on government COVID testing money, which dried up after 2021, and the FDA sent a warning letter that forced the company to recall its products. Big competitors like Abbott and Roche could have built similar tests but did not pay attention until it was too late. The company filed for bankruptcy in May 2024 and is now liquidating, so there is no Cue Health left to evaluate, only a chance that another company buys some of its leftover technology or FDA approvals.
Why
01
AI pressure: None apparent. Cue Health shut down before any AI diagnostics tool became relevant; AI played no role in its collapse. Could AI do the core job? Yes, likely.
02
Bigger players: Abbott, Roche, Cepheid (Danaher). These larger diagnostics makers never had to out-compete Cue: pandemic demand collapse and an FDA warning letter killed it first. Could a giant copy it? Yes, easily.
03
What protects it. None: Cue Health is in Chapter 7 liquidation with no operating business, product, or assets left to defend.
What would change this call
Delaware Bankruptcy Court docket #1:24-bk-11096 issues final asset-disposition report. Shows whether any acquirer buys Cue's FDA-cleared IP/hardware, creating a new distinct entity.
A buyer announces relaunch of Cue's testing platform under a new company name. Would indicate the technology persists but as a separate, re-evaluable business.
OTC stub HLTHQ trading volume or delisting notice. Confirms residual equity value remains near zero with no operational recovery.
A buyer announces relaunch of Cue's testing platform under a new company name. Would indicate the technology persists but as a separate, re-evaluable business.
OTC stub HLTHQ trading volume or delisting notice. Confirms residual equity value remains near zero with no operational recovery.
Key numbers
- Chapter 7 filed, Case #1:24-bk-11096, Delaware
- 2023 revenue fell to $70.94M, down ~85% year over year
- FDA warning letter forced discard of test kits
Named risks
- Company is fully liquidated via Chapter 7; no ongoing business exists.
- FDA warning letter (May 9, 2024) ordered discard of core product over unauthorized kit changes.
- Revenue was ~80% pandemic-era public-sector procurement with no durable commercial market.
- OTC shares (HLTHQ) trade at near-zero value with no operating business behind them.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Abbott | losing to | Cue Health ceased operations May 2024 while Abbott's BinaxNOW/ID NOW remained active |
| Roche | losing to | Cue filed Chapter 7 bankruptcy May 28, 2024; Roche Diagnostics continued unaffected |
| Cepheid (Danaher) | losing to | Cue's product ordered discarded per FDA warning letter May 9, 2024; GeneXpert platform unaffected |
| Lucira Health | contesting | Peer at-home molecular COVID test maker Lucira also filed bankruptcy in 2023, showing sector-wide collapse |
Questions people ask
- Is Cue Health still in business in 2026?
- No. Cue Health shut down all operations and laid off its entire staff in May 2024, then filed Chapter 7 bankruptcy liquidation in Delaware on May 28, 2024, Case #1:24-bk-11096. It has zero employees and zero revenue as of 2026.
- Did Cue Health go bankrupt?
- Yes. Cue Health Inc. filed for Chapter 7 bankruptcy liquidation (not reorganization) in the U.S. Bankruptcy Court, District of Delaware on May 28, 2024, following a full shutdown of operations earlier that month.
- Is it safe to accept a job at Cue Health?
- No, there is no job to accept. Cue Health laid off all roughly 250 remaining employees in May 2024 and ceased operations entirely before filing Chapter 7 bankruptcy on May 28, 2024. The company has no active workforce.
- Could AI replace Cue Health's diagnostics business?
- The question is moot. Cue Health stopped operating in May 2024 and entered Chapter 7 liquidation on May 28, 2024. Its FDA authorization was undermined by a May 9, 2024 FDA warning letter ordering users to discard its test kits.
- Who are Cue Health's biggest competitors?
- In portable molecular diagnostics, Cue Health competed against Abbott, Roche, and Cepheid (owned by Danaher), all larger diagnostics companies with stronger distribution and regulatory depth. Cue never surpassed challenger status and filed Chapter 7 bankruptcy on May 28, 2024.
- What happened to Cue Health's stock, HLTH?
- Cue Health delisted from Nasdaq after its Chapter 7 bankruptcy filing on May 28, 2024, and shares now trade over the counter under HLTHQ at near-zero value, reflecting the company's liquidated status as of mid 2026.
Timeline
- 2024-05-28Cue Health files Chapter 7 bankruptcy liquidation in Delaware, Case #1:24-bk-11096
- 2024-05-16Terminates $100M secured credit facility with Comerica and East West Bank
- 2024-05-09FDA issues warning letter, orders users to discard COVID-19 test kits
- 2024-05-01Cue Health shuts down operations, lays off remaining ~250 staff
- 2024-03-19CEO Ayub Khattak steps down, co-founder Clint Sever named CEO
- 2022-12-31Headcount peaks at 1,515 employees on pandemic testing demand
- 2021-09-24Cue Health IPOs on Nasdaq as HLTH, raises $200M at ~$2.3B valuation
- 2021-05-01Series D round raises $235M from J&J, Koch, MSD, and others
- 2021-03-26FDA reissues Emergency Use Authorization EUA200248 for COVID test system
- 2020-06-10FDA issues original Emergency Use Authorization for Cue COVID-19 Test
Revision history
24 July 2026
First assessed. Little protection left. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- San Diego COVID-19 test maker Cue Health files for bankruptcy following company closure (2024-06-07)
- Cue Health Raises $200 Million in IPO At $2.3 Billion Valuation (2021-09-28)
- Cue Health (HLTHQ) Stock Price & Overview (2026-07-20)
- Cue Health, Inc. - 675673 - 05/09/2024 (2024-05-13)
- 8-K (2024-03-19)
- Cue Health Announces Pricing of Initial Public Offering (2021-09-23)
- Cue Health Stock Price, Funding, Valuation, Revenue & Financial Statements (2024-05-27)
- Cue Health counts up $200m in IPO (2021-10-26)
- 8-K (2024-05-28)
- Cue Health 2026 Company Profile: Valuation, Funding & Investors (2026-06-20)
- Cue Biopharma Reports First Quarter 2026 Financial Results (2026-05-14)