The U.S. government is set to cease the distribution of free doses of Merck & Co Inc's (NYSE: MRK) COVID-19 antiviral treatment Lagevrio (molnupiravir), by mid-November, shifting its availability to the commercial market.
The Administration for Strategic Preparedness and Response, a U.S. Department of Health and Human Services division, recently announced this transition, citing the need for the drug to be made available through traditional commercial channels.
Merck, in collaboration with Ridgeback Biotherapeutics, has developed molnupiravir. However, the drug's commercial distribution is contingent upon an updated letter of authorization from the FDA.
Initially considered a promising breakthrough in the early stages of the pandemic, molnupiravir eventually faced stiff competition from Pfizer Inc's (NYSE: PFE) rival treatment, Paxlovid.
Molnupiravir's effectiveness, at only 30%, has also been overshadowed by Pfizer's Paxlovid, which has at nearly 90%.
Merck and Ridgeback Biotherapeutics withdrew their COVID-19 pill application in the European Union due to insufficient data for not backing the drug.
Additionally, a recent study featured in the journal Nature has brought up worries regarding potential COVID-19 virus mutations that may be transmitted in connection with molnupiravir.
Despite this, Merck has conveyed its trust in the drug's clinical characteristics, pointing out limitations in the study.
Since its authorization, Reuters reported that the U.S. government has distributed more than 3.2 million courses of molnupiravir, of which over 1.4 million have been administered.
Paxlovid has seen a distribution of 15.4 million courses, with almost 10 million courses used.
Price Action: MRK shares are down 0.39% at $101.77 premarket on the last check Thursday.