Benzinga | Jan 18, 2022 06:34AM EST

Pfizer To Boost Output For COVID-19 Oral Treatment With Novasep Deal

Novasep announced an agreement with Pfizer Inc (NYSE:PFE) to help the global production of the COVID-19 pill, paxlovid.

* As part of the letter of intent signed between the two parties, Novasep will manufacture the active pharmaceutical ingredient (API) for the oral protease inhibitor against COVID-19.

* The technical transfer, on-site development, and equipment installation will begin immediately.

* Related: Canada Approves Pfizer's At-Home COVID-19 Antiviral Treatment, But Deliveries Delayed.

* Novasep will add its Mourenx manufacturing site in France to the paxlovid global supply chain as early as Q3 2022.

* Further expansion to other Novasep facilities and significantly increased volumes in 2023.

* "Novasep will produce API for use in our manufacturing network, expected to contribute to the overall (global) effort to produce 120 million courses of treatment in 2022,"

* Reuters reported quoting Pfizer, the deal is part of its plan to invest (euro)520 million ($594 million) in France over the next five years.

* Novasep plans to recruit more than 40 additional employees at the Mourenx site.

* Price Action: Pfizer shares are down 1.18% at $54.30 during the premarket session on the last check Tuesday.