QDEL - U.S. to buy $554 million worth of rapid COVID-19 antigen tests from Abbott

The U.S. government is set to spend $554.4 million to buy rapid COVID-19 tests from Abbott Laboratories (NYSE:ABT) in a bid to supply nursing homes and other high-risk populations, Reuters reported citing a senior administration official on Tuesday. The purchases will be made as needed from Abbott (ABT) as well as South Korean healthcare company Celltrion. The procurements are part of the six-point plan, unveiled by President Joe Biden early this month to fight the pandemic. The announcement called for employers with 100 or more staff members to require their employees to get vaccinated for COVID-19 or undergo tests at least weekly. Per the initiative, the administration had earmarked $2 billion to purchase rapid tests. Other test manufacturers such as Quidel (NASDAQ:QDEL) and Orasure Technologies (NASDAQ:OSUR) have also been awarded federal contracts to supply over-the-counter antigen test kits in recent days.

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U.S. to buy $554 million worth of rapid COVID-19 antigen tests from Abbott