Merck & Company (NYSE:MRK) made headlines on Friday when it revealed that molnupiravir, a drug in the research and development phase, could be used by consumers in pill form to fight COVID-19. On this project, Merck is collaborating with a privately held company called Ridgeback Biotherapeutics. If the company is successful in this endeavor, it will be the first to bring a coronavirus-specific antiviral pill to market.
What distinguishes this drug from others is that other drugs must be used under strict supervision in hospitals, whereas this will most likely be available over the counter in pharmacies. According to data, the medication reduced the risk of death or hospitalization by a whopping 50%.
As soon as this news hit the market, Merck's stock price rose 8.4% to $81.40, its highest level in nearly five years. The drug's value could range between $1 billion and $10 billion, depending on its side effects and efficacy.
In Friday’s session, the Dow Jones Industrial Average rose 1.43%, and the S&P 500 index jumped 1.15%. The NASDAQ, the tech-savvy index, grew 0.82%, and the Russell 2000, the small-cap index, surged 1.69%.