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(Alliance News) - AstraZeneca PLC on Tuesday said it has extended an existing agreement with the US government to supply up to 500,000 additional doses of AZD7442, a long-acting antibody combination in late-stage development, for the prevention and treatment of Covid-19.
The Anglo-Swedish drugmaker said the new US government deal builds on an agreement from October 2020 that was for a total of 200,000 doses with the US Department of Health & Human Service and Department of Defense. This takes AstraZeneca's total planned US supplies to 700,000 doses.
AstraZeneca said the value of the extended agreement is USD205 million and is contingent on AZD7442 receiving Emergency Use Authorisation from the US Food & Drug Administration.
The total value of current agreements with the US government for the development and supply of AZD7442 in 2021 is about USD726 million, AstraZeneca said. The company does not expect the extended agreement to affect its financial guidance for 2021.
"The long-acting antibody combination has the potential to offer almost immediate protection to those who are not able to be vaccinated, to both prevent infection or treat the disease in patients already infected with the virus. The US government's support is critical in helping accelerate the development of AZD7442, which we believe will be an important tool in the fight against Covid-19," said Chief Executive Pascal Soriot.
This follows the announcement that the rollout of AstraZeneca's vaccine has been been suspended in several European countries over blood clot fears. However, the World Health Organization, AstraZeneca, and the European Medicines Agency have insisted the shot is safe, and that there is no link between the vaccine and reported blood clots.
In addition, AstraZeneca said on Tuesday has completed the divestment of its 27% stake in biotechnology company Viela Bio Inc to Horizon Therapeutics PLC as part of Horizon's proposed acquisition of Viela.
AstraZeneca received USD775 million in cash proceeds and profit from the sale, although it said these proceeds also won't affect financial guidance for 2021.
Shares in AstraZeneca were up 3.0% at 7,189.00 pence in London on Tuesday.
By Zoe Wickens; zoewickens@alliancenews.com
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