BRUSSELS, Jan 20 (Reuters) – A U.N.-backed agency has struck a deal for nearly 30 generic drugmakers to make low-cost versions of Merck & Co’s (MRK.N) COVID-19 pill molnupiravir for poorer nations, widening access to a drug seen as a weapon in fighting the pandemic.

The antiviral pill, which in December received emergency approval in the United States, reduces hospitalisations and deaths of high-risk patients by around 30%, according to clinical trial results.

The deal, negotiated by the U.N.-backed Medicines Patent Pool (MPP) with Merck, will expand output by increasing the number of companies that will produce the drug, after Merck entered into licensing agreements with eight Indian drugmakers in October.

The new agreement allows 27 generic drugmakers from India, China and other countries in Africa, Asia and the Middle East to produce ingredients and the finished drug.

The MPP said the deal stipulated the pill would be distributed to 105 less-developed nations. A spokesperson later said deliveries from some firms covered by the deal could start as early as February.

A molnupiravir course of 40 pills for five days is expected to cost about $20 in poorer nations, an MPP official involved in the talks with drugmakers told Reuters, citing initial estimates from drugmakers, which are subject to change.

That is far below the $700 per course the United States agreed to pay for an initial delivery of 1.7 million courses, but twice as high as first estimated by the World Health Organization (WHO)-backed programme to procure COVID-19 drugs and vaccines for the world. read more

NO ROYALTIES, FOR NOW

The developers of molnupiravir, which alongside Merck are U.S. firm Ridgeback Biotherapeutics and Emory University, will not receive royalties for the sale of the low-cost versions made by generic drugmakers while COVID-19 remains classified as a Public Health Emergency of International Concern by the WHO.

Bangladesh’s Beximco Pharmaceuticals , India’s Natco Pharma (NATP.NS), South Africa’s Aspen Pharmacare Holdings (APNJ.J) and China’s Fosun Pharma are among generics firms that will produce the finished product.

Other companies, including India’s Dr Reddy’s Laboratories (REDY.NS), had struck earlier deals with Merck for the production of molnupiravir read more . Dr Reddy’s will sell molnupiravir at 1,400 rupees ($18.8) per course. read more

The MPP spokesperson said there was no firm estimate yet of the likely output from generics makers covered by the deal, but that poorer nations’ demand was expected to be largely covered.

The MPP works to increase access to life-saving medicines for poorer countries. It also has an agreement with Pfizer for the sub-licensing of its COVID-19 pill paxlovid to generics drugmakers.

Reporting by Francesco Guarascio @fraguarascio
Editing by David Goodman and Mark Potter

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