Pfizer inks another deal for its COVID-19 pill ahead of potential approval

Just two days after Pfizer inked a deal with the United Nations’ Medicines Patent Pool (MPP) to allow generic drug companies to produce the company’s COVID-19 pill for use in 95 countries, the company announced Thursday it has made another deal. This time, it’s with the U.S. government.

The COVID-19 pill deal is worth $5.29 billion. Under it, Pfizer would “supply 10 million treatment courses of its investigational COVID-19 oral antiviral candidate, Paxlovid” to the government. The pills would start going out later this year. In a news release, Pfizer CEO Albert Boula said Pfizers is “pleased the U.S. government recognizes” the potential of the COVID-19 pill.

“It is encouraging to see a growing understanding of the valuable role that oral investigational therapies may play in combatting COVID-19,” Bourla said. “We look forward to continuing discussions with governments around the world to help ensure broad access for people everywhere.”

Just like with the MPP deal, Thursday’s announcement is notable considering the fact that the Pfizer COVID-19 pill is not yet approved for use anywhere in the world. On Tuesday, Pfizer announced it is asking the Food and Drug Administration for emergency use authorization for the pill. The request came after results of a Pfizer study found the pill “caused an 89% reduction in risk of COVID-19-related hospitalization or death”.

This is the second deal the government has made to get its hands on a COVID-19 pill. The government has also made a deal with Merck to obtain 1.7 million treatment courses of its pills. The FDA is already reviewing the Merck pill and will hold a public meeting on it later this month.

The Merck COVID-19 pill deal will cost the government roughly $700 per treatment course, while the Pfizer deal will only cost $529 per course. In its news release, Pfizer said “pricing for Paxlovid is based on the principles of advance commitment, volume, equity, and affordability”.

“The price being paid by the U.S. government is reflective of the high committed volume of treatment courses being purchased through 2022,” Pfizer said. “The company has also entered into advance purchase agreements with several other countries and has initiated bilateral outreach to approximately 100 countries around the world.”