Feds award $600 million to bolster manufacturing of COVID-19 tests

Photo: seskan Monkhonkhamsao/Getty Images

The U.S. Department of Health and Human Services, through the Administration for Strategic Preparedness and Response, will invest $600 million across 12 domestic COVID-19 test manufacturers to bolster production. COVIDTests.org will reopen, and together these actions will facilitate the delivery of free COVID-19 tests to U.S. households, HHS said.

This action is meant to improve preparedness for COVID-19 and other potential pandemic threats, strengthen the nation's capacity to manufacture tests and secure approximately 200 million new over-the-counter COVID-19 tests for future federal government use.

The awards breakdown as follows: $88.7 million for Access Bio in New Jersey, $4.5 million for Advin in California, $61.2 million for Azure in Texas, $86.4 million for CorDx in California, $167 million for iHealth in California, $20.7 million for InBios in Washington, $31.4 million for Kwell Laboratories in California, $49.5 million for Maxim Bio in Maryland, $5.7 million for OraSure Technologies in Pennsylvania, $28.7 million for Princeton BioMeditech in New Jersey, $28.6 million for Quidel in California and $20.5 million for Sekisui in Delaware.

WHAT'S THE IMPACT?

Combined, the 12 U.S. manufacturing companies operate production facilities across the country and employ hundreds of workers in seven states.

In addition to the investments in domestic manufacturing, beginning September 25, households will again be able to order four free tests through COVIDTests.gov. These tests will detect the currently circulating COVID-19 variants, are intended for use through the end of 2023, and will include clear instructions on how to verify extended expiration dates, HHS said.

This upcoming round of ordering follows four previous rounds in which the Administration for Strategic Preparedness and Response and the U.S. Postal Service provided more than 755 million tests to various U.S. households. These were complemented by ASPR's ongoing distribution of free COVID-19 tests to long-term care facilities, low-income senior housing, uninsured individuals and underserved communities, with 500 million tests provided to date through these channels, according to HHS.

Assistant Secretary for Preparedness and Response Dawn O'Connell said manufacturing the tests domestically "strengthens our preparedness for the upcoming fall and winter seasons, reduces our reliance on other countries, and provides good jobs to hard working Americans."

THE LARGER TREND

Last week, following approval from the Food and Drug Administration, the Centers for Disease Control and Prevention recommended that everyone 6 months and older get an updated COVID-19 vaccine from either Pfizer-BioNTech or Moderna, which are now available to those who have not received a COVID-19 vaccine in the past two months. The CDC recommends individuals get vaccinated for protection this fall and winter.

The latest vaccines offer protection against current variants. While COVID-19 deaths and hospitalizations had been on the rise in recent months, NBC News reported this week that this recent uptick may have peaked, at least in some areas. Biobot Analytics, a company that tracks wastewater samples at hundreds of sites across the country, found that current average coronavirus levels across the U.S. are about 5% lower than they were last week.

Declines were seen in mid-Atlantic states such as Virginia and Maryland, but water collection sites in the Midwest and Northeast continue to show a steady uptick in virus spread.
 

Twitter: @JELagasse
Email the writer: Jeff.Lagasse@himssmedia.com