By Dhirendra Tripathi
Investing.com – Pfizer stock (NYSE:PFE) fell more than 1% in Tuesday’s premarket trade after the company said it will sell its Covid-19 oral drug in low- and middle-income countries without earning royalties as long as the World Health Organization keeps the pandemic classified as a public health emergency of international concern.
Pfizer has signed a licensing pact with UN-backed public health organization called Medicines Patent Pool (NASDAQ:POOL), to expand access for the oral medicine in low- and middle-income countries.
Under the deal, qualified generic medicine manufacturers worldwide that are granted sub-licenses will be able to supply the medicine, covering up to approximately 53% of the world’s population.
The drug was expected to be another money-spinner for the pharmaceutical giant after the success of its Covid-19 vaccine, providing a second line of defense against the disease for health authorities and a second pillar of income for the company.
MPP has already invited expressions of interest from parties to manufacture and sell the co-pack containing the drug, scientifically known as PF-07321332, as well as ritonavir, the HIV drug that has to be jointly given under the prescribed treatment.
The pill, which is still awaiting regulatory approval, is one of only three oral medicines so far to prove their efficacy against Covid-19, along with treatments from Merck (NYSE:MRK) and Regeneron (NASDAQ:REGN). Pfizer claims to reduce the risk of hospitalization or death by 89%. Merck's (NYSE:MRK) molnupiravir, boasts an efficacy ratio of just over 50%.