Divi’s Labs shares up 7 percent after Merck pill raises hope for COVID patients

Divi’s Labs share price was up over 7 percent in the afternoon session on October 4, after experimental antiviral pill Molnupiravir was found to reduce the risk of hospitalisation or death of approximately 50 percent of those most at risk of contracting COVID-19.

Divi’s Labs  is Merck’s authorised manufacturer of Molnupiravir. Divi’s Laboratories, which makes the main ingredient of Merck & Co's experimental antiviral pill, reported positive clinical trial results for the drug.

US-based Merck and Ridgeback Biotherapeutics announced that its investigational oral antiviral medicine, Molnupiravir, has significantly reduced the risk of hospitalisation or death of non-hospitalised adult patients with mild-to-moderate COVID-19.

"At the recommendation of an independent Data Monitoring Committee, and in consultation with the US FDA, the recruitment into the study is being stopped early due to these positive results. Merck plans to submit an application for Emergency Use Authorisation (EUA) to the US FDA soon and marketing applications to other regulatory bodies worldwide," the US-based company said in a statement.