Why Moderna Stock Plunged Today

Shares of Moderna (NASDAQ: MRNA) fell 11.4% on Friday after rival drugmaker Merck (NYSE: MRK) released positive data for a new oral antiviral treatment for COVID-19.

Merck said an interim analysis of a phase 3 study showed its drug, known as molnupiravir, cut the risk of hospitalization or death by roughly 50% for patients with mild or moderate cases of the disease. The healthcare giant intends to request Emergency Use Authorization for the treatment from the Food and Drug Administration based on its encouraging clinical trials results.

"More tools and treatments are urgently needed to fight the COVID-19 pandemic, which has become a leading cause of death and continues to profoundly affect patients, families, and societies and strain healthcare systems all around the world," Merck CEO Robert Davis said in a press release. "With these compelling results, we are optimistic that molnupiravir can become an important medicine as part of the global effort to fight the pandemic."

Source Fool.com