The U.S. Dept. of Health and Human Services (HHS) and Defense Dept. (DoD) announced a $7.6 million contract for COVID-19 testing from Hologic (NSDQ:HOLX).
Marlborough, Mass.-based Hologic will receive the contract with a ceiling of $7.6 million so it can expand production of custom sample collection and processing consumables for COVID-19 testing, according to a news release.
Hologic’s tube, cap and multi-tube unit consumables are used to perform molecular diagnostic tests on the company’s Panther Fusion system. With the additional funds from the contract, Hologic is slated to boost its test production from 4.8 million per month to 6.8 million per month, with the increased consumable volume expected to reach the market by January 2021.
The fully automated Panther systems provide initial results from the tests in approximately three hours, processing more than 1,000 coronavirus tests in 24 hours. Hologic already has two approved COVID-19 tests, landing emergency use authority (EUA) for its first COVID-19 diagnostic in March, then notching another EUA for the Aptima assay in May.
“The Trump Administration’s coordination across the federal government is important toward the successful execution of our national testing strategy to fight COVID-19,” HHS Assistant Secretary for Health Adm. Dr. Brett Giroir said in the release. “Hologic’s platform is in high demand, and with this investment, we will be able to improve the supply to laboratories across the country.”