Regeneron (NASDAQ:REGN) Pharmaceuticals is set to sell a potential COVID-19 prophylactic antibody in the U.S. at an internationally comparable price, according to a recent update on its deal with the U.S. government. This development marks the first time the Biden administration has directly leveraged its influence to challenge drugmakers' list prices.
Under Project NextGen, Regeneron received significant government funding to develop an antibody therapy aimed at preventing COVID-19. The U.S. Department of Health and Human Services (HHS) has now disclosed that any product commercialized from this public-private partnership will have a U.S. list price equal to or less than retail prices in other comparable markets.
Regeneron initially entered the COVID-19 market with its first antibody therapy, REGEN-CoV (casirivimab and imdevimab), also known as Ronapreve, in August 2021, when infection rates were still on the rise and booster doses were not yet widespread. However, the emergence of several new SARS-CoV-2 variants compromised the potency of this therapy, and it was eventually deemed ineffective against the Omicron variant. Consequently, in January 2022, the FDA revised the original emergency use authorization to prohibit its use in the U.S.
Despite these setbacks, sales of the antibody continued globally, where it is marketed by Roche. The therapy reported $613.2 million in Q1 sales, although none were recorded in the following quarter.
The Project NexGen initiative presents Regeneron with another opportunity to develop a prophylactic antibody against COVID-19, this time with significantly increased government funding. The HHS will cover up to 70% of the company’s costs to develop such an antibody, resulting in a potential value of approximately $326 million in government funding.
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