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Department of Defense Awards Hologic a $199 Million Dollar Contract for COVID19 Tests

On October 30, 2020, the Department of Defense (DoD), in coordination with the Department of Health and Human Services, awarded Hologic, Inc. a $119 million contract to expand its production capacity for Covid-19 molecular tests. The deal will boost labor and capital investments allowing Hologic to provide 13 million Covid-19 tests and test consumables per month in supplier's facilities in California, Maine, and Wisconsin for the U.S. market by January 2022.

Hologic, Inc. is an innovative medical technology firm majorly focused on improving women’s health and well-being through early detection and treatment. The company, with funding support from Biomedical Advanced Research and Development (BARDA), developed the Panther Fusion SARS-CoV-2 Assay and the Aptima SARS-COV-2 Assay, both of which were authorized for Emergency Use by the Food and Drug Administration (FDA) in March 2020 and May 2020. The tests operate on the company's fully automated Panther Fusion and Panther systems, producing initial results in approximately three and processing over a thousand tests in 24 hours. The Panther Fusion system adds PCR (Polymerase Chain Reaction) chemistry and provides an expanded in vitro diagnostics menu, as well as Open Access functionality to carry out critical tests in the laboratory. More than two thousand of these systems have been installed in clinical diagnostic laboratories in all the states in the U.S. and many other countries in the world.

The DoD’s Defense Assisted Acquisition (DA2) Cell led the proceedings leading to the contract award in coordination with the Department of the Air Force's Acquisition Covid-19 Task Force (DAF ACT) and BARDA within HHS. The funding for the contract proceedings was provided through the Health Care Enhancement Act (HCEA) to support domestic industrial base expansion for critical medical services.

“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 the Diagnostic Solutions Division at Hologic. “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.”