Shionogi inks govt deal for COVID-19 therapy supply

Japanese pharma major Shionogi (TYO: 4507) saw its shares gain 4.5% to 7,904 yen today announced a basic agreement with the Ministry of Health, Labor and Welfare (MHLW) for the supply of S-217622, an orally administered antiviral drug for COVID-19, in Japan.

The basic agreement was concluded on the condition that Shionogi initiates manufacturing and marketing of S-217622 after receiving regulatory approval in Japan. This is the first such contract for a domestically-produced oral therapeutic drug for COVID-19. The main provision is that the company and the MHLW will advance negotiations toward the conclusion of a purchasing contract and a distribution consignment contract until regulatory approval is obtained.

The expectation is that the Japanese government will purchase 1 million courses of S-217622 immediately after approval, so that S-217622 can be widely provided to COVID-19 patients, primarily in Japan, and will continue to purchase a certain number of courses of S-217622 after that.