FLC | DOD, HHS award $7.6 million to Hologic to expand COVID-19 test supply

DOD, HHS award $7.6 million to Hologic to expand COVID-19 test supply

July 30, 2020

As part of an ongoing collaboration between the Department of Defense (DoD) and the Department of Health & Human Services (HHS), an undefinitized contract action with a ceiling of $7.6 million was awarded to Hologic, Inc. on July 25 to expand domestic production of custom sample collection and processing consumables for COVID-19 testing.

This investment will enable Hologic to expand domestic production of collection and processing consumables to support increased production and availability of COVID-19 tests for the United States. These Tube, Cap, and Multi-tube Unit (MTU) consumables are critical for performing molecular diagnostic tests on the Panther and Panther Fusion systems. Hologic is currently producing these consumables in Wisconsin and distributing to customers out of the company's California and Tennessee distribution centers. Under the agreed upon project schedule, Hologic expects to deliver the increased volume of consumables to market by January 2021.

The unprecedented demand for molecular diagnostic testing driven by the COVID-19 pandemic has exceeded Hologic's current production capacity for sample collection and processing consumables. Hologic is 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 up to 1,000 tests in a 24-hour period.

This effort has been led by the DoD’s Joint Acquisition Task Force (JATF) in coordination with the Department of the Air Force’s Acquisition COVID-19 Task Force (DAF ACT) and funded through the Paycheck Protection Program and Health Care Enhancement Act (PPPHCEA) to enable and support domestic industrial base expansion for critical medical resources.