Merck shares appeared Monday after the Cidid-19 compound Ridgeback Biotherapeutics treatment was promising 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 antiviral treatments against (the virus known as) SARS-CoV-2 are inadequate, we are encouraged by this preliminary data,” said Dr. Wendy Painter, chief medical officer of Ridgeback, said in a written statement.
On the current stock market, the Merck share jumped 1.4% to 74.17.
Merck Stock Rises with Covid Drug Study
The companies studied their treatment in 202 adults who were not admitted to the hospital, who had symptoms of Covid-19. Of these, only 78 at the beginning of the study showed observable levels of the virus. This included 47 people receiving molnupiravir and 25 people on placebo.
On day five, none of the molnupiravir patients had detectable levels of the virus. But six out of the 25-person placebo group still tested positive for Covid-19.
The oral antiviral treatment was safe. Of the four serious side effects reported, none were related to molnupiravir, Merck and Ridgeback said.
Merck’s inventory has mostly declined this year after the development of two “inferior” coronavirus vaccines was scrapped. The promise of an oral treatment with Covid thus gave Merck shares a boost.
Poorly rated pharmaceutical stock
According to MarketSmith.com, Merck shares remained well below the 50-day and 200-day moving averages on Monday.
The weak record shows the stock’s Relative Strength Rating. Merck stock has an RS rating of 6 out of a best possible 99. This means that Merck stock has shown 94% of all stocks under performance over the past twelve months.
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Follow Allison Gatlin on Twitter @IBD_AGatlin.
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