Merck Inks Supply Deal With Sinopharm To Commercialize COVID-19 Pills In China

Merck & Co Inc MRK signed a cooperation framework agreement in China for its COVID-19 antiviral pills, which were co-developed by Ridgeback Therapeutics.
The pharma giant has granted Sinopharm exclusive import and distribution rights to Lagevrio (molnupiravir).
The companies will also negotiate the feasibility of a technical transfer under the framework so that the drug Molnupiravir could be produced and provided in the Chinese mainland market, Global Times reported.
While Pfizer's pills wowed the industry, reporting 89% effectiveness for reducing the chance of hospitalization and death, the efficacy figure for Merck's treatment was an underwhelming 30%.
Paxlovid has clearly become the favored treatment in the U.S. But Lagevrio has held it's own overseas, becoming the primary COVID therapy in certain countries, such as Japan.
Reuters reported that molnupiravir was once touted as a potential game changer for treating COVID-19, but Pfizer Inc's PFE Paxlovid had significantly better results in its clinical trial and has been much more widely used in the U.S.
Price Action: MRK shares closed at $86.88 on Wednesday.