Test manufacturers including Abbott Laboratories, Becton Dickinson
and Co, and Quidel Corp in recent months scaled back production of
rapid COVID-19 tests, which can produce results on-site in minutes,
as well as test kits that are sent to laboratories for analysis. The
move followed a nearly 90% decline in testing and a similarly large
drop in COVID-19 cases in the United States.
Abbott in June shut down two production lines in Maine and closed a
manufacturing plant in Illinois. Around the same time, Quidel
shifted production away from COVID-19 tests. Becton Dickinson had
also scaled back production in recent months.
Now, with the Delta variant pushing U.S. COVID-19 cases well above
100,000 per day, test makers are working to quickly reverse course,
industry executives and state officials told Reuters.
"We’re hiring people and turning on parts of our manufacturing
network that were idled or slowed when guidance changed and demand
plunged," Abbott said in a statement.
However, testmakers including Abbott and Becton Dickinson cautioned
that there may be supply constraints in the near term.
“With the rise of cases from the Delta variant... there is currently
some tightness in supply as manufacturers ramp back up," said Troy
Kirkpatrick, a spokesperson for Becton Dickinson, adding that the
company expects inventory levels "will normalize over the next
couple of weeks."
Demand for COVID-19 tests has been largely driven by healthcare
providers, employers and schools, he added.
Supplies could tighten even further as more state governments and
private employers demand staff either get vaccinated or agree to
regular testing. Pfizer Inc and Goldman Sachs are among major
employers requiring staff to be regularly tested.
Testing in schools is a top priority for federal and state officials
as a minority of the roughly 70 million school-age U.S. children
have been vaccinated. Those under 12 are not yet eligible for the
shots.
Demand for diagnostic tests has surged nearly six-fold in the past
two months, from around 250,000 per day in early July to nearly 1.5
million in mid-August, according to U.S. federal data. The data only
tracks diagnostic tests that are run in laboratories.
That demand is only expected to grow.
More than half a dozen states, including California, Delaware, and
South Carolina, have set up comprehensive surveillance testing
programs for their public K-12 schools, while Pennsylvania and
Arkansas are among at least a dozen other states developing similar
plans. Even in states without such plans, many local school
districts are rolling out surveillance programs.
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Ysleta Independent School
District in El Paso, Texas, expects to need
around 40,000 Abbott rapid tests per month to
monitor students for COVID-19, said Lynly Leeper,
the district’s chief financial and operational
officer.
Her school district had been planning to shut
down its testing program until the Delta variant
sent cases soaring in the state in recent weeks.
SUPPLY CHAIN CONCERNS
Delaware, which was among the first to roll out
a comprehensive surveillance testing program in
July, has already begun to see some test
shortages, said Dr. Rick Pescatore, an associate
medical director in the state’s public health
agency.
The surge in test demand has sounded alarms
among federal officials, who are “concerned that
people are going to start shutting down our
supply chain,” limiting the flexibility to
respond to a spike in cases, said Quidel Chief
Executive Douglas Bryant told Reuters.
The recent increase in surveillance testing
"really stresses the supply chain,” said Dana
Lerman, medical director at The COVID
Consultants, a physicians group that provides
COVID-19 testing and advisory services. Her
organization has seen demand for rapid tests
increase 200% since June.
Even if testmakers are able to keep up with
rising demand from U.S. schools, states will
still face challenges covering the expense of
widespread testing, which experts say will cost
the average school district at least $1 million
each year.
Ysleta in El Paso said it expects it will cost
around $3 million to safely test its students
this school year, and is relying on Texas to
provide it with funds.
The Biden administration granted $10 billion to
help states developing COVID-19 testing
programs. Experts said the sum is far short of
what states will need to cover testing for the
full school year.
“More federal funding will be necessary," said
Dr. Antonia Sepulveda, president of the
Association of Molecular Pathology that
represents diagnostic testing laboratories, "for
institutions to continue comprehensive testing
programs."
(Reporting by Carl O'Donnell; Editing by Michele
Gershberg, Caroline Humer and Bill Berkrot)
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