Biotech company Regeneron Pharmaceuticals Inc REGN announced the signing of a $2.625 billion supply agreement with the U.S. government for its COVID-19 antibody cocktail.
What Happened: The U.S. Department of Health and Human Services and the Department of Defense have decided to buy an additional 1.25 million doses of Casirivimab and Imdevimab antibody cocktail. Including the earlier agreement to supply vaccine doses for 300,000 people, the potential total supply is up to 1.5 million.
As per the agreement, all finished doses will be delivered by June 30.
If a lower dose level of 1,200 mg is authorized, Regeneron can fulfill its supply commitments. However, the company estimates its output levels at 750,000 doses at the currently-approved dose level of 2,400 mg. It is also engaging with Swiss pharma company Roche Holdings AG RHHBY to boost the global supply of Casirivimab and Imdevimab.
Since the government coordinating with the state and territorial health departments, all pertinent information will be available on the HHS and National Infusion Center Association websites.
Why Does It Matter: As part of Operation Warp Speed, these doses will be diverted to the non-hospitalized COVID-19 infected patients. Patients can secure these doses at zero cost, however, healthcare facilities may levy a fee for administering the vaccine.
Price Action: After a 0.56% gain during regular trading hours on Tuesday, REGN rose an additional 2.92% in the after-hours at $520.51.
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