US pharmaceutical company Eli Lilly and Co (Lilly) (NYSE:LLY) has signed an agreement with the US government to supply 300,000 vials of its experimental antibody drug to treat COVID-19 for USD375m, Reuters news agency reported on Wednesday.

This agreement is for delivery over the two months following an emergency use authorisation if granted by US regulators. The US government also has the provision to purchase up to an additional 650,000 vials through 30 June 2021, Lilly said.

Reportedly, Lilly had submitted a request to the US Food and Drug Administration in October 2020 for emergency use authorisation of the drug for treating mild to moderate COVID-19 patients.

Lilly added that the US government has committed that patients will have no out-of-pocket costs for the medicine, although healthcare facilities may charge a fee for the product's administration.