COVID-19 Pill approved: Did Merck & Co. get a valuable drug?

Shares of Merck & Co., Inc. (MRK) on Wednesday, December 1, are growing in the premarket thanks to the news about the drug’s approval from coronavirus. 

Following the results of trading on December 30, MRK’s share was worth $74.91. The US Food and Drug Administration (FDA) approved the drug Molnupiravir (MK-4482/EIDD-2801), created by Merck & Co. specialists to treat COVID-19. 

Capsules for swallowing, which can now use for emergency prevention and therapy in groups with an increased risk of serious complications. 

The drug Molnupiravir may become an addition to vaccines in the future, but the interaction with other drugs has not so far. Molnupiravir reduces the risk of hospitalization and death by 30%. 

Less than the figure of 48% in the course of studies, but still clinically significant effectiveness. In addition, the decrease in results may be due to the selection of a group of 139 volunteers – all had a positive serological reaction. Other drugs have not yet on such patients. 

Thus, Pfizer’s Paxlovid antiviral therapy has to be more effective: reducing the risk of hospitalization and death by 89%. However, Pfizer’s drug has not yet received approval. In general, the demand for medicines from COVID-19 is so great that it will involve the production capacities of several manufacturers. 

Pfizer has already received a contract to supply 10 million Paxlovid treatment courses to the US government. The value of the contract with deliveries by 2022 is almost $5.3 billion. As a result, Pfizer is likely to have an advantage in the COVID-19 pill segment, providing significant revenue growth for the company in the coming quarters.