Merck (NYSE: MRK) announced an agreement with Singapore to provide access to its experimental oral Covid-19 antiviral drug, molnupiravir. Australia has already ordered 300,000 courses of the drug, while Thailand, South Korea, Taiwan, and Malaysia are also in talks to buy the drug.
Merck provided promising interim updates on the experimental oral Covid-19 drug last week, noting that it cut the risk of hospitalization or death by 50% for patients with mild-to-moderate Covid-19. This indicates that the drug could emerge as an important tool in the fight against Covid-19.
Merck stock has gained almost 8% since the interim data from the trials of the drug were announced late last week and we think the stock has further upside, given the strong prospects of the new drug and Merck’s other products.