Merck and partner Ridgeback Biotherapeutics released strong data for their new Covid-19 pill. WSJheard explains how this could be a boon on Main Street and Wall Street. WSJWhatsNow
announced Thursday, Merck suddenly has likely blockbuster drugs in waiting to treat Covid-19, as well as rare diseases such as pulmonary arterial hypertension. At about 15 times this year’s adjusted profit forecast, Merck shares are hardly expensive.
The antiviral news just might give biotech stocks of all types a badly needed jolt. A broad index of biotechnology stocks has shed 12% so far this year and fell yet again Friday morning, as shares in other drugmakers with Covid-19 treatments sold off sharply. But in this corner of the stock market, a dose of positive sentiment can have major benefits.
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