Merck’s stock exploded on Monday after its treatment with Ridgeback Biotherapeutics’ partner Covid-19 showed promise in an interim analysis of a Phase 2 test.
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The companies are testing an oral antiviral treatment known as molnupiravir. After five days of treatment, none of the patients treated with molnupiravir tested positive for Covid-19. But almost a quarter, 24%, of those who received a placebo were still positive for Covid, Merck (MRK) and Ridgeback said.
“At a time when there is no need for antiviral treatments against (the virus known as) SARS-CoV-2, we are encouraged by this preliminary data,” said Ridgeback’s chief physician, Dr. Wendy Painter, in a statement by written.
In today’s stock market, Merck’s shares jumped 1.4% to 74.17.
Merck stock rises with Covid drug study
The companies studied its treatment in 202 out-of-hospital adults who showed symptoms of Covid-19. Of these, only 78 had detectable levels of the virus in tests at the beginning of the study. This included 47 who received molnupiravir and 25 with placebo.
On the fifth day, none of the patients with molnupiravir had detectable levels of the virus. But six of the group of 25 people with a placebo still tested positive for Covid-19.
Oral antiviral treatment was safe. Of the four serious adverse events reported, none were related to molnupiravir, Merck and Ridgeback said.
Merck’s shares fell mainly this year, after the company abandoned the development of two “inferior” vaccines against the coronavirus. Therefore, the promise of an oral treatment with Covid gave a boost to Merck’s actions.
Pharmaceutical Actions with Poor Classification
Merck’s stock remained well below its 50- and 200-day moving averages on Monday, according to MarketSmith.com.
The poor track record appears in the stock’s Relative Strength Rating. Merck’s shares have an RS rating of 6 out of the 99 best possible. This means that Merck’s shares underperformed 94% of all shares in terms of performance in the past 12 months.
Keep an eye on IBD Digital for more stock valuations.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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