AstraZeneca bags $486 million US govt award for its COVID-19 candidate

To meet the Trump Administration's Operation Warp Speed goals, the US Department of Health and Human Services (HHS) and Department of Defense (DoD) on Friday announced an agreement with UK pharma major AstraZeneca (LSE: AZN) for late-stage development and large-scale manufacturing of the company's COVID-19 investigational product AZD7442, a cocktail of two monoclonal antibodies, that may help treat or prevent infection with SARS-CoV-2, the coronavirus that causes COVID-19.

The Biomedical Advanced Research and Development Authority (BARDA), part of the HHS Office of the Assistant Secretary for Preparedness and Response, collaborated with the DoD, to provide around $486 million to AstraZeneca for two Phase III clinical trials and related development activities, including a large-scale manufacturing demonstration project and supply of AZD7442 doses in the USA. This adds to a $1.2 billion award from the BARDA for COVID-vaccine supplies. The company’s American shares traded up 1.3% to $55.45 after-hours.

Assuming FDA approval, US government will distribute the treatment at no cost