After US Purchased 600K Doses of Eli Lilly COVID Antibody Drug, How Did Stock Perform?

Doctor hold a vial of monoclonal antibodies, a new treatment for coronavirus Covid-19.
Cristian Storto Fotografia / Getty Images/iStockphoto

The Biden Administration announced it purchased 600,000 treatment courses of the new Eli Lilly monoclonal antibody, bebtelovimab, that works against Omicron on Thursday, Feb. 10.

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On Friday, Feb. 11, The U.S. Food and Drug Administration (FDA) issued an Emergency Use Authorization (EUA) for bebtelovimab, Eli Lilly announced in a press release.

“Today’s action makes available another monoclonal antibody that shows activity against omicron, at a time when we are seeking to further increase supply,” Patrizia Cavazzoni, M.D., director of the FDA’s Center for Drug Evaluation and Research, said in a press release.  “This authorization is an important step in meeting the need for more tools to treat patients as new variants of the virus continue to emerge.”

Following the news, shares of Lilly were flat in the extended session after ending the regular trading day down 1.6%, MarketWatch reported Friday.

On Monday, Feb. 14, shares were down 1.54% in pre-market trading.

The Health and Human Services Department (HHS) said it would receive approximately 300,000 treatment courses of this monoclonal antibody in February and approximately 300,000 treatment courses in March, according to an announcement.

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The supply agreement calls for the delivery of up to 600,000 doses no later than March 31, with an option of 500,000 additional doses no later than July 31, and the 2022 estimated financial impact of this agreement is at least $720 million of revenue and approximately $0.20 of earnings per share (EPS), according to an Eli Lilly press release.

“We want to make sure if an American gets sick with COVID-19, they can get a treatment that works,” HHS Secretary Xavier Becerra said in the announcement. “Our top priority is preventing people from getting sick in the first place, which is why it is critical that Americans continue to get vaccinated and get their booster shot as soon as they’re eligible.”

HHS said that it was determined recently, it was determined that the two monoclonal antibody treatments — one made by Lilly (bamlanivimab/etesevimab), and one made by Regeneron (REGEN-COV) — were highly unlikely to work against Omicron, which currently is estimated to make up about 100% of all COVID-19 cases in the U.S.

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However, early data suggests that this new product by Lilly has activity against both Omicron and the BA.2 Omicron subvariant, according to HHS.

“Should the BA.2 subvariant grow in proportion in the U.S., this potential treatment may help ensure that we can continue to offer monoclonal antibody treatment that works against that strain of the virus,” HHS said in the announcement.

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About the Author

Yaël Bizouati-Kennedy is a full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She also worked as a vice president/senior content writer for major NYC-based financial companies, including New York Life and MSCI. Yaël is now freelancing and most recently, she co-authored  the book “Blockchain for Medical Research: Accelerating Trust in Healthcare,” with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in Journalism from New York University and one in Russian Studies from Université Toulouse-Jean Jaurès, France.
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