Pfizer's oral Covid-19 drug may hit revenues of Divi's Laboratories

Supply of Molnupiravir to Merck was a key near-term trigger for the stock

The second largest pharmaceutical stock by market capitalisation, Divi’s Laboratories slipped over 6.3 per cent in trade on Monday. The drop was on worries related to the introduction of Pfizer’s anti-Covid oral drug and its impact on Divi’s revenues, weak show of its generic business in the September quarter and expensive valuations.

The negative stock reaction has been triggered by the announcement by US drug giant Pfizer on Friday that its Covid-19 oral drug has reduced the risk of hospitalisation or death by 89 per cent in a clinical trial. This is similar to the oral pill announced by Merck and