Pharmaceutical company Merck reported, that, together with partner Ridgeback Biotherapeutics, they developed an effective drug for COVID-19. Shares of Merck and most airlines soared, while vaccine developer Moderna's papers fell by 11,4%.
What is the medicine?
As Merck said., the drug for oral administration "Molnupiravir" can reduce the risk of hospitalization or death of the patient on 50%. According to tests, the drug is effective against all strains of the virus, including against the more contagious delta strain.
775 patients with COVID-19 participated in the third phase of drug trials. Of those, who took Molnupiravir, within a month hospitalized 7%. But the proportion of hospitalized patients, taking placebo, amounted to 14%. The study was conducted with the participation of unvaccinated patients with such risk factors, how old is, diabetes and heart disease.
“Given the convincing results, we hope, that Molnuviravir will be an important medicine in the global fight against the pandemic", — said the head of Merck. American infectious disease specialist Anthony Fauci reported, that the regulator will review the test data as soon as possible.
Molnuviravir may be the first oral cure for COVID-19. Other coronavirus medications, such as "Remdesivir", administered intravenously in medical institutions.
Merck and Ridgeback Biotherapeutics are already producing a new drug and are negotiating supplies with different countries.. Pfizer and Roche are also conducting final trials of their antiviral drugs..
What about stocks
Investors reacted positively to Merck's message. Friday, 1 October, the company's shares rose by 8,4%, to 81,4 $. Since the beginning of the year, Merck securities have risen in price by 5,4%.
"In recent quarters, Merck has been kind of dead to investors.. Now we see, that their R&D department is not dead. They were the first in that, what can bring billions ", Bahl Management Company said & Gaynor.
But shares of COVID-19 vaccine maker Moderna fell by the end of the day. 11,4%, to 341,1 $. Thanks to the vaccine, the company's revenue in the first half of 2021 grew strongly compared to the same period last year: with 75 up to 6,300 million dollars.
Even with Friday's drop, Moderna's shares are up in 2021 205%. "The latest news is a great reason to lock in profits on Moderna shares", — advise in Wedbush Securities.
Shares of vaccine developers BioNTech and Novavax also fell by 6,7 And 12,2%. Papers of manufacturers of injectable drugs for COVID-19 Regeneron and Gilead fell by 5,7 And 1,9%.
If Merck's new drug is approved, this will help to cope with the pandemic faster. And it will reduce people's fear of traveling and being in public places.. For this reason, shares of the largest American air carriers on Friday rose.: American Airlines — on 5,5%, United Airlines — on 7,9%, Delta Air Lines — to 6,5%.
Shares of pandemic-hit Hilton and Carnival added 4,6 And 4,3%.
