To keep up with demand, Sorrento acquires majority ownership in Covid-19 test manufacturer

In a move that the company hopes will up its ability to respond to demand for its Covid-19 tests, Sorrento Therapeutics has acquired a majority ownership in a Chinese diagnostics manufacturer.

Sorrento Therapeutics will use Zhengzhou Fortune Bioscience to manufacture Covistix, its rapid antigen section test for Covid-19 and its variants. The tests have been approved for emergency use and is on the market in Brazil and Mexico. The company now has a majority ownership, with the option to acquire 100% of the company.

Demand for Covid-19 tests has surged alongside the prevalence of variants. US President Joe Biden pumped $562 million in US companies to boost the domestic manufacturing of Covid-19 tests in October. Just a few weeks ago, manufacturers told Time that demand is so high that they’re struggling to keep up. And some lawmakers, such as Sen. Ed Markey (D-MA), have called for…
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