Fosun Pharma Discloses Details on MPP Authorization to Manufacture Merck's Molnupiravir for Low- and Middle-Income Countries

On January 21, Fosun Pharma announced that it had supplemented the details of being authorized by MPP (Medicines Patent Pool) to produce MSD's COVID-19 oral drug Molnupiravir.

According to the sublicense agreement, the MPP grants Shanghai Yicheng Hospital Investment Management Co., Ltd. a non-exclusive license to use relevant patents and proprietary technologies for the production, commercialization, and related rights of the investigational oral COVID-19 treatment drug Molnupiravir in 105 low- and middle-income countries/regions, including India, Pakistan, and Côte d'Ivoire (excluding China). The effective date is January 7, 2022.

Before the commercial production of Molnupiravir, the company still needs to complete the relevant technology transfer, and the production facilities must be approved by SRA or pass WHO PQ certification. The production and sales of the authorized drugs in the region also need to wait for approval from relevant regulatory authorities (including but not limited to marketing approval) before implementation. Regarding product pricing, it will be supplied at actual cost plus a reasonable markup. The expected pricing is projected to be lower than that of the original research product or the price in other middle- and high-income countries.

According to the nature of the purchaser, Fosun Pharma's industry should pay patent license fees to MSD at 5% or 10% of the annual net sales. However, based on the MSD-MPP agreement, the aforementioned patent license fees will start to be collected from the month following the WHO's announcement that COVID-19 is no longer classified as a "Public Health Emergency of International Concern." In other words, Fosun Pharma currently does not need to pay patent license fees to MSD.