Shares of Merck (MRK) moved sharply higher after announcing the vey successful medical trial of an oral COVID-19 antiviral medication. The drug name is Molnupiravir and it has showed promising results in phase three trials. Merck is seeking emergency use authorization from the U.S. Food and Drug Administration (FDA). The news also caused to price decline in Shares of vaccine makers Pfizer and Moderna,.
In addition Anthony Fauci, US leading infectious disease expert, said the data from Molnupiravir trials looks “very promising”. Accordingly, he believes that the FDA will act quick to approve the drug for use once they submit the application for it.
If Merck drug approved, it will be the first oral antiviral medication to receive FDA approval. The benefit of such medication is that it does not require healthcare facility for administration of the drug. In addition it will increase access to patients affected by the disease as they will not be require to visit an hospital for it.
Merck (MRK) is trading now at the $83.0 price level and we believe it has an immediate price target of $100 or higher.