Reuters.- Merck & Co Inc said Thursday that its experimental Covid-19 drug could generate between $ 5 billion and $ 7 billion in sales through the end of next year, assuming it gets U.S. clearance in December.
Merck shares were up more than 4% at $ 85.65 in midday trading.
The antiviral drug molnupiravir has been closely followed since Merck earlier this month reported data showing it could curb the chances of hospitalization or death in people at increased risk of developing severe Covid-19 when administered early in the disease.
Advisers from the US Food and Drug Administration will meet in November to vote on whether to authorize the drug. If approved by the FDA, the drug developed with Ridgeback Biotherapeutics will become the first oral antiviral treatment for Covid-19.
Merck Chief Executive Robert Davis said in an interview that the forecast of $ 5 billion to $ 7 billion for the pill is based on signed contracts and regions where the company has high confidence that a deal will be reached. The estimate could even go up.
While vaccines remain the main weapons against Covid-19, Merck’s experimental pill could be a game changer, as other treatments for the disease are given as infusions or injections, mostly in a hospital setting. Molnupiravir is taken twice a day for five days.
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Merck said it expects between $ 500 million and $ 1 billion in sales of the drug this year. The proceeds will be shared equally with Ridgeback.
In June, the US drugmaker agreed to provide 1.7 million doses of molnupiravir to the US government for about $ 1.2 billion once authorized by regulators. Other countries have been quick to sign deals for the drug since its data was announced.
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