South Africa Authorizes Merck's COVID-19 Antiviral Pill, But Government Not Buying: Reuters

South Africa's government said it was not planning to buy Merck & Co Inc's MRK COVID-19 treatment pill molnupiravir for cost reasons, despite the drug gaining approval in the country.

• Countries are negotiating prices with Merck and Pfizer Inc PFE. The U.S. government is paying $700 for each course of molnupiravir.
• "The authorization of molnupiravir for compassionate use offers further therapy in the fight against COVID-19," Boitumelo Semete-Makokotlela, chief executive of SAHPRA, said.
• But health department Deputy Director-General Nicholas Crisp told Reuters that an evaluation score from the National Essential Medicines List Committee indicated that Merck's pill would not be cost-effective.
• "We are not planning to procure molnupiravir," Crisp said, adding that the advisory committee was yet to evaluate Pfizer's Paxlovid. 
• However, the private sector can buy whatever is allowed by SAHPRA since medicines are not like vaccines sold to governments only, he added.
• SAHPRA said that Pfizer had applied for authorization of use of Paxlovid, and it was considering the application.
• Price Action: MRK shares are down 0.41% at $76.90 during the market session on the last check Thursday.