Benzinga | Oct 1, 2021 07:19AM EDT

Qiagen Secures DoD Contract To Boost Production Capacity For NeuMoDx

* Qiagen NV (NYSE:QGEN) won a U.S. government contract to increase the production capacity for consumables used on its NeuMoDx 96 and 288 integrated PCR testing systems.

* Related Link: Qiagen's COVID-19 Antigen Test Gets FDA Emergency Use Approval

* Qiagen was awarded a $3.4 million contract by the U.S. Department of Defense (DOD), on behalf of and in coordination with the Department of Health and Human Services (HHS), to expand production capacity for COVID-19 tests running on NeuMoDx instruments at its site in Ann Arbor, Michigan.

* By the end of March 2022, Qiagen plans to scale production to more than 16 million tests per year, up from the current level of about 10 million.

* This contract follows an announcement in August 2021 that DoD and HHS had awarded Qiagen a contract for approximately $600,000 to expand production capacity for chemical reagents.

* Price Action: QGEN stock is down 0.66% at $51.34 during the premarket session on the last check Friday.