Regeneron To Collaborate With Roche For Global Supply Of Its Coronavirus Treatment

Regeneron Pharmaceuticals Inc (NASDAQ: REGN) and Roche Holding AG (OTC: RHHBY) on Monday disclosed that they are collaborating to develop, manufacture, and distribute the former's COVID-19 antibody cocktail.

What Happened

The two companies are joining forces in the fight against the dreaded pandemic that has claimed millions of lives across the globe.

Regeneron’s investigational anti-viral antibody cocktail REGN-COV2 can be used as a treatment option for people experiencing coronavirus symptoms. The company claims the drug also has the potential to prevent infection in people exposed to the virus, which will help slow the spread of the pandemic.

This collaboration will help increase the supply of REGN-COV2 by three and a half times the current capacity with the potential of further expansion. The REGN-COV2 is currently being studied in two Phase 2/3 clinical trials for the treatment of COVID-19 and in a Phase 3 trial for the prevention of the virus.

In case the vaccine is proved safe and effective in clinical trials, Regeneron will distribute and record sales for the drug in the United States, while Roche will handle overseas distributions.

What's Next

"We are excited about the potential for one medicine to serve both as a treatment for those infected as well as protection for people exposed to the virus. REGN-COV2 could be a critical line of defense against the COVID-19 pandemic," said Roche CEO Bill Anderson.

"We're committing our manufacturing expertise and capacity, and our global distribution network, to bring Regeneron's potential antibody combination to as many people around the world as we possibly can."

The agreement terms are such that each company has committed to dedicate a certain manufacturing capacity to REGN-COV2 each year. The distribution expenses will be borne by each company in their respective territories.

REGN Price Action: Regeneron shares were down 0.34% at $618.59 on Monday.

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