Ortho Clinical Diagnostics (NSDQ:OCDX) announced that it received a $53.7 million government contract for its COVID-19 tests.
Raritan, N.J.–based Ortho Clinical Diagnostics was awarded an undefinitized contract set to lead to a $53.7 million contract from the Biomedical Advanced Research and Development Authority (BARDA) as a continuation of the partnership between the two entities, according to a news release.
The latest BARDA contract is set to support a more than three-fold increase in domestic production capabilities for Ortho Clinical Diagnostics’ serological and diagnostic testing solutions, the company said.
Ortho Clinical Diagnostics is now set to receive enough funding to expand its capacity to provide up to 6.7 million COVID-19 tests per month for the U.S. market by the second quarter of 2022. The expansion is centered around the company’s Vitros systems and its two COVID-19 antibody tests, along with the Vitros SARS-CoV-2 antigen test.
“Ortho’s ongoing partnership with BARDA and the Department of Defense to significantly expand our COVID-19 testing manufacturing capabilities underscores the continued and critical importance of bolstering the nation’s testing infrastructure by leveraging highly accurate, automated and scalable diagnostic and serological tests that are FDA emergency use authorized,” Ortho Clinical Diagnostics chairman & CEO Chris Smith said in the release. “Our high-volume testing solutions have already been an indispensable asset for hospitals, reference labs, and public health leaders across the country, particularly in rural and underserved communities. We look forward to expanding the availability of these testing solutions to communities in need.”