US government buys 187 million coronavirus tests from Abbott and Celltrion for $1.2 billion

At the end of September 2021, the US Department of Health and Human Services (HHS) announced that it would spend almost $1.2 billion on the purchase of 187 million rapid tests for COVID-19 coronavirus from Abbott Laboratories and Celltrion.

These deals are part of an investment of about $2 billion announced by the Biden administration in early September 2021 to make express tests more accessible to citizens. The Government also uses the Defence Production Act to increase production capacity.

Products known as antigenic tests give results in about 15 minutes on site, without having to be sent to the laboratory. Demand for testing for viruses, including express products, grew amid the latest wave of COVID-19 in the United States.

US government buys 187 million COVID-19 tests from Abbott and Celltrion for $1.2 billion

In early September 2021, the White House announced that it would authorize staff to either get vaccinated or undergo weekly testing. As part of the statement, the administration warned that it would acquire rapid testing worth about $2.2 billion. The U.S. government has also entered into agreements to purchase tests from others such as Quidel Corporation, OraSure Technologies and Intribo.

According to the new agreements, Abbott will supply 168 million of its products to BinaxNOW in the amount of $554.4 million, and Celltrion will deliver at least 19 million of its tests DiaTrust in the amount of $626.4 million. These tests are known as point tests and can only be used in certain settings, including medical facilities.

On September 17, 2021, the United States also entered into deals worth $647 million with Abbott and other companies for the supply of $60 million of express tests, which can be purchased without a prescription.

These test kits will begin to be delivered in early October 2021, and the government will be able to place additional orders until September 2022, according to a statement by the Ministry of Defense.^[1]

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