Summary
Regeneron Pharmaceuticals, Inc. (REGN) announced on September 14, 2021, a significant amendment to its existing supply agreement with the U.S. Government, acting through the Army Contracting Command. This amendment secures an order for an additional 1.4 million doses of REGEN-COV™ (casirivimab and imdevimab), the company's COVID-19 antibody cocktail. This agreement represents a substantial financial commitment, with the U.S. Government obligated to purchase these doses for a total of $2.940 billion, priced at $2,100 per dose. The U.S. Government will acquire the doses at the lowest therapeutic dose (excluding pediatric) authorized or approved by the FDA by the delivery date. Regeneron is committed to delivering these doses by January 31, 2022, with specific minimum delivery targets for each month leading up to that date. The agreement also includes standard U.S. Government contract terms, such as the right to terminate for convenience, with provisions for Regeneron to receive compensation for work performed in such an event. This expanded contract underscores the continued demand for REGEN-COV™ and provides a significant revenue stream for Regeneron.
Key Highlights
- 1Regeneron secured an amendment to its supply agreement for an additional 1.4 million doses of REGEN-COV™ with the U.S. Government.
- 2The total value of this new order is approximately $2.940 billion, with doses priced at $2,100 each.
- 3The U.S. Government is obligated to purchase all filled and finished doses delivered by January 31, 2022.
- 4The company must deliver a minimum number of doses each month from September to December 2021, with an overall delivery deadline of January 31, 2022.
- 5The pricing is based on the lowest therapeutic dose (excluding pediatric) authorized or approved by the FDA at the time of delivery.
- 6The agreement includes customary U.S. Government contract terms, including the right for the government to terminate for convenience.