Regeneron in $2.6 Billion Deal For More Doses of COVID Treatment

U.S. to purchase additional 1.25 million doses of antibody cocktail used to treat Trump.
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Regeneron Phamaceuticals  (REGN) - Get Report said Tuesday it will supply an additional 1.25 million doses of a monoclonal antibody cocktail -- which was used to treat President Donald Trump -- to the Department of Health and Human Services and the Department of Defense for use in combatting COVID-19 in high-risk patients.

Under the agreement, “the government is obligated to purchase all finished doses supplied by June 30, up to 1.25 million doses total (an agreement value of up to $2.625 billion),” Regeneron said in a statement. The agreement comes on top of an earlier deal to supply 300,000 doses, Regeneron said.

The casirivimab and imdevimab antibody cocktail won an emergency use authorization from the FDA last November for use in in high-risk patients with mild to moderate COVID-19. The medicine is used to reduce the risk of progression to severe COVID-19 and hospitalization.

Trump received the treatment on an experimental basis when he was hospitalized for COVID-19 in October.

“COVID-19 continues to sicken hundreds of thousands of Americans every day and the people of Regeneron are committed to help," said Leonard S. Schleifer, president and CEO of Regeneron, in a statement. "Tackling the COVID-19 pandemic will require a combination of public health measures, vaccines and therapeutics. We are pleased to work with the U.S. government to supply our antibody cocktail as an important weapon in this fight."

Shares of Regeneron rose $15.25, or 3%, to $521.00 in after-hours trading.

Elsewhere, shares of companies pursuing coronavirus treatments were mixed Tuesday. Vir Biotechnology  (VIR) - Get Report shares rose $3.79, or 13.41%, to $32.05. BioNTech  (BNTX) - Get Report ADRs fell $3.45, or 3.17%, to $105.45.

The SPDR S&P Biotech ETF  (XBI) - Get Report rose $1.29, or 0.87%, to $149.35.