Merck & Co Inc (NYSE: MRK) stock continues to surge in pre-market Friday trading, with Citi analyst Andrew Baum stating he expects the price to benefit “very significantly” from successful Covid data.
The Merck stock price is currently up 9% in pre-market, extending yesterday’s gains following the acquisition of Acceleron. Today’s price jump is off the back of the latest bit of positive Covid news – Merck’s oral anti-viral molnupiravir reduced the risk of hospitalization and death by 50% in a population suffering moderately from Covid-19.
The news was welcomed in the market today with Merck stock price reaching new annual highs, with further gains expected into the day. Citi analyst Andrew Baum gave further backing to molnupiravir revenues and their proven efficacy – stating they “deserve a reasonable multiple” for their practical application in Covid and beyond, issuing a price target of $105. Merck stock is currently trading around the $81 mark.
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With Phase 3 trials brought to an early, successful close, Merck and Ridgeback Biotherapeutics aim to receive authorization for the treatment as soon as possible.
Ridgeback CEO Wendy Holman said in a statement: “Antiviral treatments that can be taken at home to keep people with COVID-19 out of the hospital are critically needed”
It has certainly been a positive few days of trading for Merck and for Covid-19 treatment as a whole. Merck’s stock price is likely to continue its gains as the trading day continues, so this might be one worth monitoring.
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