U.S. Reaches $375 Million Deal for Lilly Covid-19 Antibody Drug
October 28 2020 - 1:36PM
Dow Jones News
By Peter Loftus
Drugmaker Eli Lilly & Co. agreed to provide 300,000 doses of
its experimental Covid-19 antibody drug to the federal government
for $375 million, if the medicine is authorized for emergency use
in the U.S., the company said Wednesday.
The U.S. Department of Health and Human Services said the
federal government will allocate the doses to state and territorial
health departments, which will, in turn, determine which hospitals
and health facilities get the drug.
Under the supply agreement, each vial costs $1,250, Lilly said.
One vial would be enough for an individual patient, who federal
health officials said won't face out-of-pocket costs for the drug,
though health-care facilities may charge a fee for administering
the IV infusion.
HHS partnered with the Defense Department to reach the Lilly
supply agreement.
The deal is the latest by the federal government to lock up
supplies of promising coronavirus vaccines and treatments. Earlier
this year, Regeneron Pharmaceuticals Inc. said it received $450
million to manufacture and supply 300,000 doses of its experimental
antibody-based drug for Covid-19.
Antibody drugs, which borrow from the immune system's natural
defenses against pathogens, promise to fill a big gap in Covid-19
care, treating patients before their cases turn serious and require
hospitalization.
They might also briefly protect against infections, providing a
bridge to vaccines until they are available.
Public attention on the drugs received a boost after President
Trump took Regeneron's following his diagnosis and then touted
their benefits.
Indianapolis-based Lilly has asked for U.S. Food and Drug
Administration authorization of its drug to treat patients with
mild to moderate Covid-19 who are at higher risk of advancing to
severe disease.
In a clinical trial, the drug kept a higher proportion of these
recently diagnosed patients out of the hospital than those who
received a placebo.
The antibody, which Lilly originally code-named LY-CoV555 but is
now calling bamlanivimab, is essentially a clone of an
immune-system agent that can block the coronavirus that causes
Covid-19.
Lilly developed it in collaboration with AbCellera Biologics of
Vancouver, Canada, which identified the antibody from a blood
sample taken from one of the first U.S. patients to recover from
Covid-19.
Earlier this week, the National Institute of Allergy and
Infectious Diseases ended a study of bamlanivimab after concluding
that adding it to standard treatment -- including Gilead Sciences
Inc.'s remdesivir -- provided no clinical benefit to hospitalized
Covid-19 patients.
Lilly says it believes the antibody is more effective earlier in
the course of disease than in severe cases that require
hospitalization.
Lilly and federal researchers continue to test the antibody for
other uses and in different populations. In addition to treating
patients with mild to moderate Covid-19, it is being tested for its
potential to prevent disease in people at risk of infection,
including nursing-home residents and staff.
Even before receiving authorization, Lilly has been
manufacturing doses of bamlanivimab and expects to have 100,000
ready to ship within days of a clearance. The company expects to
make up to 1 million doses by the end of the year.
The new U.S. supply agreement has an option for the U.S. to buy
up to an additional 650,000 vials through June 30, 2021, for up to
$812.5 million.
Lilly said it also is discussing with global regulators the
potential to make the drug available in other countries. The
company will pursue tiered pricing agreements for government
purchases of the drug, basing ability to pay on income per
capita.
The drugmaker said it would offer the price of $1,250 per vial
to all wealthy countries, which it said would yield a modest
financial return for its investors by the end of 2021.
Write to Peter Loftus at peter.loftus@wsj.com
(END) Dow Jones Newswires
October 28, 2020 14:21 ET (18:21 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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