Cue Health receives $481 million from HHS to increase production of COVID-19 diagnostic tests
… HHS Invests In Cue Health To Accelerate COVID-19 Test Production …


COVID-19 Test Produces Accurate Results In 20 Minutes


John G. Baresky

San Diego, California-based Cue Health is receiving a massive boost in funding from the Department of Health and Human Services (HHS). HHS is investing $481 million in Cue so that it can ramp up the production of its COVID-19 diagnostic test.

Cue Health, San Diego, California

Fast, reliable tests differentiate the Cue Health COVID-19 test from others

The Cue Health diagnostic test generates results in about 20 minutes. Another major attribute of the Cue Health test is that it does not require a lab to process it. The test is administered to patients by using a proprietary nasal swab (“Cue Sample Wand”); the swab is inserted into a small medical device (“Cue Cartridge Reader”) that analyzes it with a high degree of accuracy.

Bluetooth technology supports the Cue Health App that connects to the Cue Cartridge Reader. It drives a data delivery interface for organizing and monitoring test data. Up to six Cue Cartridge Readers can be synced with a mobile device that enables higher throughput for scalability that can be used for small and large scale contact tracing and other measuring purposes.

Large scale production of the Cue Test will provide greater marketplace access

Based on its ability to deliver results fast and without additional facility-based processing, HHS wants to make the test available on a widespread basis. The funding CUE receives will be allocated to production capabilities so that it can escalate manufacturing from several thousand tests per day to approximately 100,000 per day by late in the first quarter of March 2021.

The federal government will be one of Cue’s largest clients

The U.S. government plans to buy about 6 million of the test swabs from CUE plus around 30,000 analytic devices to perform the patient sample testing analysis. Officials were impressed and convinced by the results and data that Cue Health and Mayo Clinic generated through an independent study of the performance of the swab and analytic device.

Cue Health is a startup with noteworthy financial backing besides HHS

Founded in 2010, Cue Health has received funding from Johnson & Johnson (NYSE: JNJ) as well as Biomedical Advanced Research and Development Authority (BARDA). It employs less than 200 associates and is also developing a range of other diagnostic products for flu (Types A and B), sexual and women’s health purposes. The latest funding from HHS and the performance of its COVID-19 test provide Cue Health with a clinical, financial and commercial lift it can leverage to attract more investors and further develop its product portfolio in the future.

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