Merck, Ridgeback Withdraw COVID-19 Pill European Application Amid Regulatory Hurdles
Portfolio Pulse from Vandana Singh
Merck & Co Inc and Ridgeback Biotherapeutics have withdrawn their COVID-19 pill application in the European Union due to regulatory hurdles and insufficient data. The drug's effectiveness, at only 30%, has been overshadowed by Pfizer Inc.'s COVID drug, Paxlovid, which has nearly 90% effectiveness. Merck expects a significant decline in sales of the drug, Lagevrio, in FY23, down to approximately $1.0 billion from $5.7 billion in 2022.
June 27, 2023 | 6:06 pm
News sentiment analysis
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NEGATIVE IMPACT
Merck's withdrawal of its COVID-19 pill application in the EU and expected significant sales decline in FY23 could negatively impact its stock price.
The withdrawal of the application for the COVID-19 pill in the EU due to regulatory hurdles and insufficient data, coupled with the expected significant decline in sales of the drug in FY23, could negatively impact investor sentiment and thus the stock price of Merck.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Pfizer's COVID-19 drug, Paxlovid, with its high effectiveness, could gain more market share due to the withdrawal of Merck's drug application in the EU.
With Merck's COVID-19 pill facing regulatory hurdles in the EU and its effectiveness being overshadowed by Pfizer's Paxlovid, Pfizer could potentially gain more market share in the EU. This could positively impact investor sentiment and thus the stock price of Pfizer.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50