Regeneron to Partner With Roche on COVID-19 Drug

Regeneron Pharmaceuticals and Roche Holding are partnering to develop, manufacture, and distribute an experimental COVID-19 drug. The coronavirus outbreak has claimed millions of lives worldwide. If the drug wins approval, the partnership will help increase the supply of Regeneron's promising investigational drug for COVID-19 by more than three times the current capacity. The partnership brings together two companies that are typically competitors.

Regeneron Pharmaceuticals stock was up about 1.6 percent at $628.70 in pre-market trading today. The stock fell 0.3 percent yesterday and closed at $618.59, with a market capitalization of $65.8 billion. Regeneron Pharmaceuticals stock has risen by 3.3 percent in the last five days, and by 108.4 percent in the last year.

Regeneron Pharmaceuticals stock is trading 6.9 percent below its 52-week high of $664.64 and 128.0 percent above its 52-week low of $271.37. Year-to-date, the stock had risen by 64.8 percent as of yesterday.

Regeneron's drug, REGN-COV2, can be used as a treatment option for COVID-19. If the drug is approved, Regeneron will distribute the drug in the U.S., while Roche will sell the drug elsewhere. Regeneron expects initial data from the ongoing trials of REGN-COV2 in September. Roche's own COVID-19 drug, Actemra, failed to proceed past trials.

A press release stated that “REGN-COV2 could provide a much-needed treatment option for people already experiencing symptoms of COVID-19, and also has the potential to prevent infection in people exposed to the virus, thus slowing the spread of the global pandemic.”

Under the terms of the agreement, both companies will devote a certain portion of their manufacturing capacity to REGN-COV2 each year. The two companies have already started the technology transfer process. Each company will bear its own distribution costs.

Roche stock rose 0.5 percent yesterday and closed at $43.56, with a market capitalization of $299.7 billion. The stock has risen by 3.3 percent in the last five days, and by 25.5 percent in the last year. Roche stock is trading 6.6 percent below its 52-week high of $46.63 and 29.0 percent above its 52-week low of $33.76. Year-to-date, the stock had risen by 7.1 percent as of yesterday.

With coronavirus cases rising globally, the need for a coronavirus vaccine is moving at full speed. Globally, more than 100 coronavirus vaccines are under development. AstraZeneca, Johnson & Johnson, Moderna, and Pfizer have been racing to develop a COVID-19 vaccine.