July 26, 2020
HHS and DOD Invest $7.6M in Hologic to Expand Production of Custom Sample Collection and Processing Consumables for COVID-19 Tests
Today, as part of an ongoing collaboration between the U.S. Department of Health and Human Services (HHS) and the U.S. Department of Defense (DOD), the two departments awarded an undefinitized contract action with a ceiling of $7.6 million awarded to Hologic Inc. to expand production of custom sample collection and processing consumables for COVID-19 testing.
The tube, cap, and multi-tube unit consumables are critical for performing molecular diagnostic tests on the Panther and Panther Fusion systems. This investment will increase Hologic's production from 4.8 million COVID-19 tests per month to 6.8 million tests per month. Hologic Inc. is expected to deliver the increased volume of consumables to market by January 2021.
“The Trump Administration’s coordination across the Federal government is important toward the successful execution of our national testing strategy to fight COVID-19,” said HHS Assistant Secretary for Health ADM Brett Giroir, M.D. “Hologic’s platform is in high demand, and with this investment, we will be able to improve the supply to laboratories across the country.”
The unprecedented demand for molecular diagnostic testing driven by the COVID-19 pandemic had exceeded Hologic Inc.’s production capacity for sample collection and processing consumables. Hologic Inc. is now positioned to support the demand for COVID-19 testing in the United States due to the installed base of more than 1,100 fully automated, high throughput Panther and Panther Fusion systems. These Panther systems are each capable of performing more than 1,000 tests in a 24-hour period. Hologic has received ongoing support to develop the COVID-19 test for these systems from the Biomedical Advanced Research and Development Authority, part of the HHS Office of the Assistant Secretary for Preparedness and Response.
This effort has been led by the DOD’s Joint Acquisition Task Force in coordination with the Department of the Air Force’s Acquisition COVID-19 Task Force and funded through the Paycheck Protection Program and Health Care Enhancement Act to enable and support industrial base expansion for critical medical resources.