Benzinga | Aug 17, 2021 01:44PM EDT

Roche's Arthritis Drug, Used As COVID-19 Treatment, Faces Supply Shortage

Genentech and Roche Holdings AG's (OTCQX:RHHBF) drug Actemra, or tocilizumab, was granted FDA emergency use authorization for critically ill COVID-19 patients after showing it cut the risk of death.

Less than two months after that development, the company is running out of supplies of the drug.

What Happened: In a press release Monday afternoon, Roche said, there will be a global shortage of Actemra "over the weeks and months ahead."

Roche blamed the dynamically evolving nature of the pandemic, with a surge in cases coupled with declining vaccination rates.

Related: Billionaire Masayoshi Son's SoftBank Claims $5B Stake In Roche.

"We are committed to proactive and timely communication with hospitals, practices, distributors, and pharmacy customers as the situation evolves and Actemra supply becomes more readily available," Genentech's statement said.

Why It Matters: The announcement comes just a little more than a month after the WHO endorsed the use of IL-6 receptor antagonists in combination with corticosteroids to treat severe COVID-19 cases.

The drug class, typically used for arthritis treatments, includes Actemra and Sanofi SA's (NASDAQ:SNY) Kevzara.

The European Medical Agency has also started evaluating Actemra to extend its use to hospitalized COVID-19 adult patients.

The evaluation includes patients who are already receiving treatment with corticosteroids and require extra oxygen or mechanical ventilation.

Related content: Benzinga's Full FDA Calendar.

Price Action: RHHBY shares closed at $50.59 on Monday.

See also: BEST HEALTH INSURANCE