Regulators slap Promedical $63,000 fine over COVID-19 test kit approval

Australian company Promedical is facing a $63,000 fine over false claims about the approval of its COVID-19 test kits.

Promedical is peddling COVID-19 test kits which it claims have receive approval from Australian and American authorities. The Queensland-based company also claims that its test kits are being endorsed by the two governments.

This is not the first blunder by Promedical. Recently, the company is at the middle of a failed deal to supply COVID-19 test kits to a number of countries. Reports claim that the company does have a license to supply Chinese-made COVID-19 antibody tests. However, that is the only license given to the company.

A series of failed deals

Australia’s Therapeutic Goods Administration is issuing five infringement notices against Promedical. The institution is also charging a fine amounting to $63,000 over these violations.

In a statement, the TGA clarifies:

“The TGA investigates allegations of unlawful activity in relation to therapeutic goods, as the regulatory scheme is important to the safety of Australian consumers.”

Prior to these recent violations, the company has a long list of failed negotiations. As countries scrounge for limited test kits, Promedical contacted the Puerto Rican government. The relatively unknown company claims that it can supply COVID-19 antibody test kits to the country.

Desperate for these test kits, the Puerto Rican government agree to a $38 million deal. Due diligence in part of the Puerto Rican government lead to the failure of the deal to push through. The failure also raise alarms about Puerto Rico’s capacity to properly test its citizens.

According to sources, the failed deal has brought Promedical in the spotlight. Countries are now skeptical to bargain a trade with the company.

What happened

Further investigations reveal that Promedical has little to do with the failure. The company acts only as an intermediary and plans to resell the test kits from a Chinese manufacturer. When the manufacturer did not deliver the goods, Promedical decided to just manufacturer its own.

At the head of Promedical is a convicted rapist with no experience in the diagnostic manufacturing industry. As a result, the company has a reputation for selling products for erectile dysfunction and vaginal rejuvenation.

Despite its failure, Promedical made similar promises to the Australian government. The company claims that it is capable of supplying the country with 500,000 test kits.

As of this writing, Australia continues to conduct COVID-19 tests. More than 6,000 people have tested positive for the virus.

Image courtesy of Centers for Disease Control and Prevention/Wikimedia Commons

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