Saying that sky-high demand for testing has exceeded its current production capacity, Hologic has received a $119 million contract from the U.S. government to boost its manufacturing of tests and diagnostic supplies for COVID-19.
Awarded by the Department of Health and Human Services and the Department of Defense, the money will help expand the company’s production facilities in Wisconsin, Maine and California, with the goal of providing 13 million tests per month by January 2022.
“Hologic’s platform is in high demand, and with this investment we will be able to improve the supply to laboratories across the country in addition to scaling up employment in Hologic supplier facilities,” HHS Assistant Secretary for Health Brett Giroir said in a statement, adding that the company has an installed base of more than 1,100 high-throughput Panther and Panther Fusion testing systems in place across all 50 states.
Hologic first received emergency authorizations from the FDA for its coronavirus assays earlier this year, and has also received support from HHS’ Biomedical Advanced Research and Development Authority, also known as BARDA.
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“Hologic has already made significant investments in our test production capacity, which have resulted in our contributing tens of millions of COVID tests to the United States supply,” said Kevin Thornal, president of Hologic’s diagnostics division. “Our manufacturing teams continue to innovate to increase our contribution, and we are very pleased to partner with the federal government to further our ability to meet the ongoing public health need.”
In addition, the FDA expanded its authorization of Hologic’s test in late September, allowing it to be used to screen people without any COVID-19 symptoms. Previously, many FDA authorizations restricted testing to those who showed symptoms or had a confirmed exposure, to help prioritize the use of limited tests.
The agency also gave the company a green light for pooled testing, allowing multiple samples to be analyzed at once, and only retested individually if a group result comes back positive. The pooled testing strategy offers a way to stretch testing resources while processing larger numbers of people, however it is more successful in areas with a low prevalence of the disease.