Benzinga | Mar 2, 2021 09:13AM EST

Merck To Offer Hand With JNJ COVID-19 Vaccine Production, Biden Administration Says: Report

U.S. President Joe Biden will announce that Merck & Co (NYSE: MRK) will help manufacture its rival Johnson & Johnson's (NYSE: JNJ) newly authorized coronavirus vaccine to boost the supply, Washington Post reports.

* The officials started looking for additional manufacturing capacity amid concerns about Johnson & Johnson's production delays.

* The administration brokered an arrangement with Merck, which had already tried to develop a coronavirus vaccine, but it failed to generate a sufficient immune response.

* Under the arrangement, Merck will use two facilities in the U.S. for Johnson & Johnson's shots. One will provide "fill-finish" services, wherein the vaccine substance is placed in vials and packaged for distribution.

* While the other facility will make the vaccine itself, with a potential to double what Johnson & Johnson could create on its own, the officials said.

* No details on Merck's involvement impacting the projected supply and the distribution timetable were disclosed.

* According to one person, the "fill-finish" plant can get ready in two months and take few more months to upgrade its vaccine production facilities.

* JNJ is conducting a two-shot vaccine trial, with the doses given two months apart, with results not expected until at least May.

* On Saturday, the FDA approved the Johnson & Johnson COVID-19 vaccine for emergency use in those 18 and older.

* The company said it would immediately ship nearly 4 million doses in the U.S. and noted that additional deliveries in the coming weeks are highly dependent on a new plant's regulatory approval.

* JNJ partnered with Sanofi SA (NASDAQ:SNY) to support the manufacturing of its COVID-19 shot.

* Last week, Merck received feedback from the FDA regarding its COVID-19 drug, MK-7110. FDA has asked for additional data beyond the study already completed.

* It will no longer supply the U.S. government with MK-7110 in the first half of 2021.

* Price Action: MRK shares are up 0.6% at $72.78, and JNJ is up 0.4% at $160 in premarket trading on the last check Tuesday.