Merck's stock soars after its new Covid antiviral pill reduces risk of death

Merck (MRK.US) stock jumped over 9% during today's session after drugmaker announced its new antiviral drug molnupiravir lower the risk of death or hospitalization by 50% for Covid patients. Experts say antiviral pills could be the last tool needed to beat back Covid-19.

Only 7.3% of patients who took the pill were hospitalized according to Phase 3 study results and none of them died. Meanwhile 14.1% of placebo recipients had to be hospitalized. Eight patients in the placebo group died. The pharmaceutical company plans to file for emergency use authorization. Today's news negatively affected other pharma-giants stocks. Pfizer-partner BioNTech (BNTX.US) and Novavax (NVAX.US) at one point fell 13% and 18%, respectively.

Merck (MRK.US) stock launched today's session sharply higher and broke above the lower limit of the triangle formation. Currently price is testing major resistance at $83.80 which is marked with upper limit of the 1:1 structure and  78.6% Fibonacci retracement of the last downward wave. Should a break higher occur, then the upward move may accelerate towards resistance at $ 88.27. However, if sellers will manage to halt advances here, then another downward impulse towards support at $78.35 may be launched. Source: xStation5