Hillrom, Medtronic among 7 new ventilator contracts from HHS
Tuesday, April 14, 2020
The contracts, announced yesterday evening and worth a total of $1.44 billion, come on top of previously announced deals with Royal Philips (NYSE:PHG), which is receiving $646.7 million, and General Motors and Ventec Life Systems, which are receiving $489.4 million. Health providers across the United States and around the world desperately need more life-saving ventilators amid the COVID-19 pandemic.
The total of nine ventilator contracts — made under the Korean War–era Defense Production Act — will provide 6,190 ventilators to the Strategic National Stockpile by May 8 and 29,510 by June 1, according to HHS. Tens of thousands of more ventilators will arrive later in the year.
“President Trump and HHS’s use of the DPA is getting private manufacturers what they need to ramp up ventilator production rapidly. We are grateful to the patriotic Americans at companies working around the clock and retooling factories to increase ventilator production,” HHS Secretary Alex Azar said in a news release.
The seven new contracts include:
- Hamilton, for $552 million, will produce 14,115 ventilators by July 3 — 850 by May 8 and 4,404 by May 22. (The Switzerland-based ventilator maker is opening a factory in Reno, Nev., to better meet the contract.)
- Vyaire, at a price of $407.9 million, will manufacture 22,000 ventilators by June 29 — 1,200 ventilators by May 4 and 9,100 by June 1.
- Zoll, for $350.1 million, will produce 18,900 ventilators by July 3 — 1,010 by May 4 and 4,410 by June 1.
- General Electric, at a price of $64.1 million, will make 2,410 ventilators by June 29 — 112 by May 4 and 736 by June 1.
- ResMed’s contract, forf $31.98 million, will produce 2,550 ventilators by July 13 — 400 by May 4 and 1,150 by June 1.
- Hillrom, for $20.1 million, will produce 3,400 ventilators by July 13 — 400 by June 1.
- Medtronic, at a price of $9.1 million, will manufacture 1,056 ventilators by June 22 — 200 by May 4 and 678 by June 1.