Shionogi shares jump on report US interested in buying COVID pill

TOKYO : Shionogi & Co climbed in Tokyo trading after a report that the U.S. government is in talks with the Japanese drugmaker to acquire supplies of its experimental COVID-19 treatment.

The shares jumped as much as 2.7 per cent after Bloomberg News said the U.S. is interested in the drug if it can secure funds to pay for it.

A Shionogi spokesperson said the report did not come from the company, but confirmed it is in talks with the U.S. government on production systems and supplies.

The company has global aspirations for the antiviral pill S-217622, now being evaluated by Japanese regulators. Shionogi said in March it would launch a global Phase III trial worldwide with U.S. government support, and Chief Executive Isao Teshirogi has said production could reach 10 million doses a year.

Shionogi's shares have been on a roller coaster on speculation about success of the treatment. The stock sank by as much as 16 per cent on April 13 on reports that the drug could pose risks to pregnancies, based on preclinical data.

If approved in Japan, the drug would become the country's third antiviral cleared for coronavirus patients, following those developed by Pfizer Inc and Merck & Co.

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