By Dhirendra Tripathi

Investing.com – Merck stock (NYSE:) traded 3.5% lower in Friday’s premarket while the company awaits details of FDA’s review of the Covid-19 pill it has jointly developed with Ridgeback Biotherapeutics.

Although the stock was 1.2% higher at the beginning, it fell to 0.2% after being weighed down more broadly by market fears over South Africa’s new coronavirus. 

Companies claim the antiviral pill, Molnupiravir reduces hospitalization and death for Covid-19 patients.  It is unknown if molnupravir would work against the new strain.

Food and Drug Administration staff is expected to release a report on Friday. It will contain an analysis of the clinical trial data for molnupiravir. The report may also include FDA staff’s view on whether the agency should clear the drug for use.

If approved, molnupiravir could be the world’s first oral antiviral medicine for Covid.

The drug company previously stated that, if an emergency use authorization is granted in December, there will be a potential for $7 billion in sales and $1 billion revenue in 2022.

It is easy to produce and transport, making it relatively affordable. Merck anticipates producing 10 million doses of the drug by 2021. More dosages will be available in 2022. The U.S. government has been offered 3.1 million treatment courses by Merck, subject to all approvals.

Merck’s antiviral pill is one of only three oral medicines so far to prove their efficacy against Covid-19, along with treatments from Pfizer (NASDAQ:) Regeneron Pfizer says it can reduce hospitalizations and deaths by 89%.