Merck Covid antiviral approved in UK

[Lsbcal]

I bought Merck (MRK) based on the approval of it's antiviral drug in the UK. It pays a 2.9% dividend which is nice. For me, this is a fairly low risk short term speculation in a non-taxable account.

Based on the clinical trial data, the oral pill is most effective when taken during the early stages of infection. As such, the British regulator recommended its use as soon as possible following a positive Covid test and within five days of the onset of symptoms.

The antiviral pill has been authorized for use in people who have mild to moderate Covid and at least one risk factor for developing severe illness, such as obesity, diabetes mellitus, or heart disease and anyone over the age of 60.

Complete article: https://www.cnbc.com/2021/11/04/merck-oral-covid-pill-approved-by-uk-in-world-first.html

Value Line gives it the highest safety rating of 1, and 2 for timeliness. Before the approval Morningstar had a fair value of 94. Other services such as Schwab, Argus are positive on MRK. I don't expect it to be another Moderna but maybe a decent return as opposed to bonds with a decent helping of risk too.

 

[Lsbcal]

And this from the Wall St Journal:

The U.S. and other countries are likely to follow suit authorizing the pill, molnupiravir, after a late-stage study recently found the drug reduced the risk of hospitalization or death by about 50%.

...
Antibody drugs, such as one from Regeneron Pharmaceuticals Inc., have also been authorized in the U.K., the U.S. and other countries to treat Covid-19 patients before they are hospitalized.

The antibody drugs have been found in clinical trials to be more effective than molnupiravir, but they require infusions at a doctor’s office, hospital or medical clinic.

From CNN https://www.cnn.com/2021/11/04/health/uk-authorizes-merck-antiviral-molnupiravir-covid/index.html:

"This is the most impactful result that I remember seeing of an orally available drug in the treatment of a respiratory pathogen, perhaps ever," Dr. Scott Gottlieb, former commissioner of the US Food and Drug Administration, told CNN's Anderson Cooper last month. "I think getting an oral pill that can inhibit viral replication -- that can inhibit this virus -- is going to be a real game changer."

 

[Spock]

isn't this the drug that is "genetically active"?
From what I remember, male clinical trial participants were required to not have heterosexual sex until X days after final dosage in order to prevent the risk of birth defects.

googleing "Mulnupiravir" found

"Molnupiravir works by incorporating itself into the genetic material of the virus, and then causing a huge number of mutations as the virus replicates,effectively killing it. In some lab tests, the drug has also shown the ability to integrate into the genetic material of mammalian cells, causing mutations as those cells replicate.
If that were to happen in the cells of a patient being treated with molnupiravir, it could theoretically lead to cancer or birth defects."

 

[Lsbcal]

Spock, please provide the source.

Here is one source https://www.barrons.com/articles/merck-covid-pill-risks-51633398722

Molnupiravir works by incorporating itself into the genetic material of the virus, and then causing a huge number of mutations as the virus replicates, effectively killing it. In some lab tests, the drug has also shown the ability to integrate into the genetic material of mammalian cells, causing mutations as those cells replicate.

If that were to happen in the cells of a patient being treated with molnupiravir, it could theoretically lead to cancer or birth defects.

Merck (ticker: MRK) says it has run extensive tests in animals that show that this isn’t an issue. “The totality of the data from these studies indicates that molnupiravir is not mutagenic or genotoxic in in-vivo mammalian systems,” a Merck spokesperson said.

P.S. I am no expert on this subject

 

[Another Reader]

The short five day course is presumed to limit mutagenicity. The drug has been discussed for a trial in Long Covid, but this is a concern because treatment would be longer.