Benzinga | Oct 27, 2021 08:40AM EDT

Merck Inks Licensing Pact To Broaden Generic Manufacturing Of COVID-19 Antiviral

* Merck & Co Inc (NYSE:MRK) has signed a licensing agreement with the United Nations-backed Medicines Patent Pool (MPP) to allow more companies to manufacture generic versions of its experimental oral antiviral COVID-19 treatment.

* Merck said the royalty-free license would apply to 105 low- and middle-income countries.

* It allows manufacturers selected by MPP to make generic versions of molnupiravir, an antiviral pill Merck has developed with Ridgeback Biotherapeutics.

* Related Link: WHO-Led Program Intends To Purchase Oral COVID-19 Antivirals For $10, Including Merck's: Reuters.

* "This is the first transparent, public health-driven voluntary license for a COVID-19 medical technology," Merck and MPP said in a joint statement.

* Merck, Ridgeback Biotherapeutics, and Emory University will not receive sales royalties for molnupiravir under this agreement for as long as COVID-19 remains classified as a Public Health Emergency of International Concern by the World Health Organization.

* Related Link: Merck, Ridgeback File For Emergency Use Nod For COVID-19 Antiviral.

* Price Action: MRK shares up 0.18% at $82.40 during the premarket session on the last check Wednesday.