US to allow states to distribute Gilead's remdesivir to fight COVID-19

Reuters reports that the US Department of Health and Human Services (HHS) said on Saturday it shall allow state health departments to distribute Gilead Sciences Inc’s remdesivir drug to fight COVID-19.

Key notes

United States would receive about 40% of the drug maker’s global donation.

Gilead has committed to supply approximately 607,000 vials of remdesivir over the next six weeks in the United States, and the U.S. state health department will distribute the doses to appropriate hospitals in their states, HHS said.

Gilead’s drug has shown promise in helping patients infected with COVID-19, the illness caused by the novel coronavirus, and is being closely watched on how the limited supply is distributed.

Gilead Chief Executive Dan O’Day said in late April that Gilead would donate 1.5 million doses and work with the US government on distribution.

On Saturday, HHS said the 1.5 million doses were a global figure and that 607,000 would be distributed through the agency.

The allocation by Gilead Sciences to the United States was finalized on May 3, HHS said.

The U.S. is sending the drug remdesivir to local agencies in Illinois, Iowa, Connecticut, Maryland, Michigan and New Jersey.

Market implications

This is more positive news which could help to buoy markets along with the news of various nations and some states in the US are easing their lockdown measures. USD/JPY has started out on the front foot in the open for the week:

• USD/JPY Forecast: Bearish trend remains in place

• USD/JPY: On the bids towards 107.00 amid fresh trade/virus worries