Merck & Co. (NYSE:MRK)Signs $356 Million Deal for Supply of Its COVID-19 Treatment in the US

Merck & Co. (NYSE:MRK) has signed a $356 million supply deal with the US government for the supply of 60,000 to 100,000 doses of its investigational severe COVID-19 treatment. This adds to the government’s arsenal of possible COVID-19 therapies and also that large scale immunization is about to kick off.

The agreement supports MK-7110 development

The agreement supports the development and production of Merck’s investigational therapy, MK-7110 in treating critical or severe COVID-19 patients. The deal under Operation Warp Speed will fund the production of up to 100,000 MK-7110 doses through the end first half of 2021. However, intravenous therapy is yet to receive emergency use authorization from the FDA. The funding will support MK-7110 development including finalizing required activities for EUA submission with the delivery of doses expected on June 30, 2021.

According to an interim study, MK-7110 significantly enhanced the recovery period in hospitalized critically or several ill COVID-19 patients in need of ventilation. It also reduced chances of respiratory failure as well as mortality by over 50%. Once cleared by the FDA the doses will be available to Americans at no cost. MK-7110 is a twice-daily drug that patients will receive for five days.

Merck developing COVID-19 treatments through collaborations

Merck has created its COVID-19 treatments portfolio through several agreements in the past few months which include Themis acquisition and collaboration with Ridgeback Biotherapy. In November the company signed an agreement to acquire OncoImmune for $525 million in a deal that gave it rights to MK-7110. MK-7110 is a first-in-class fusion protein and immune modulator with the potential of minimizing damaging effects resulting due to an overactive immune response to the coronavirus.

The US has commenced mass vaccination with two vaccines receiving emergency use authorization. On Monday over 600,000 Americans received their first vaccines but the treatment need for hospitalized patients is still high. The drugmaker is also making on two possible vaccines which are in early developmental stages. Through collaboration with Ridgeback, Merck is also developing an antiviral treatment for COVID-19 called molnupiravir.