Atea Pharma inks deal with Roche on potential oral therapy for COVID-19

Swiss pharma giant Roche (ROG: SIX) has joined forces with privately-held US firm Atea Pharmaceuticals in the fight against COVID-19 to develop, manufacture and distribute AT-527, Atea’s investigational oral direct-acting antiviral.

Under the terms of the agreement, which covers territories outside of the USA, Atea will receive an upfront $350 million in cash from Roche with the potential for future milestone payments and royalties.

AT-527 acts by blocking the viral RNA polymerase enzyme needed for viral replication, and is currently being studied in a Phase II clinical trial for hospitalized patients with moderate COVID-19. A Phase III clinical trial, expected to start in first-quarter 2021, will explore the potential use in patients outside of the hospital setting. In addition, AT-527 may be developed for post-exposure prophylactic settings.

AT-527, while being a potential oral treatment option for hospitalized patients, also holds the potential to be the first oral treatment option for COVID-19 patients that are not hospitalized. Additionally, the manufacturing process of small-molecule DAAs allows the ability to produce large quantities of a much-needed treatment. If successful, AT-527 could help treat patients early, reduce the progression of the infection, and contribute to decreasing the overall burden on health systems, the companies believe.