Eli Lilly (NYSE: LLY) said the U.S. government will pay it $375 million to supply 300,000 doses of its experimental antibody drug to treat the coronavirus
The agreement is for delivery over the two months following an emergency use authorization from the Food and Drug Administration. The deal also provides the option for the U.S. government to purchase 650,000 more doses through June 30, the company said.
"Lilly has leveraged our deep scientific capability to fight this pandemic and we are proud of our efforts to develop potential medicines to combat COVID-19," Eli Lilly’s CEO David Ricks said in a statement.
Earlier this month, the company submitted a request to the FDA for emergency authorization of its drug for people with mild to moderate Covid-19. If authorization is granted, the U.S. government has committed that patients will have no out-of-pocket costs for the medicine, although health-care facilities may charge a fee for the product’s administration, the company said.
Lilly said it anticipates manufacturing up to one million doses of its drug by the end of 2020, with 100,000 doses ready to ship within days of authorization.
The agreement with the U.S. came days after the company said a trial of the drug failed to show a benefit in hospitalized patients. The company said it is confident the drug is helpful to those earlier in the course of Covid-19.
LLY shares advanced 97 cents to $132.87.
