Merck Inks Molnupiravir Supply Pact With US Government For COVID-19

Merck & Co Inc MRK has entered into a procurement agreement with the U.S. government for molnupiravir (MK-4482), an antiviral candidate for mild to moderate COVID-19.
Molnupiravir is currently being evaluated in Phase 3 MOVe-OUT study to treat non-hospitalized patients with laboratory-confirmed COVID-19 and at least one risk factor associated with poor disease outcomes.
Through the agreement, if molnupiravir receives FDA Emergency Use Authorization (EUA) or approval, Merck will receive approximately $1.2 billion to supply about 1.7 million courses of molnupiravir to the government.
Merck has been investing to scale up the production of molnupiravir and expects to have more than 10 million courses of therapy available by the end of 2021.
The company is also planning to submit applications for emergency use or approval to regulatory bodies outside the U.S. It is currently in discussions with other countries interested in advance purchase agreements for molnupiravir.
Merck is developing molnupiravir in collaboration with Ridgeback Biotherapeutics.
Price Action: MRK shares are up 0.55% at $72.80 during the premarket session on the last check Wednesday.