Shares of Divi’s Laboratories rose as much as 10 percent on Monday and hit an all-time high of Rs 5,313.8. The stock was the top gainer on Nifty50 index.

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In an important development, US-based Merck and Ridgeback Biotherapeutics announced that their investigational oral antiviral medicine Molnupiravir could have the chances of significantly reducing the risk of hospitalization or death for those most at risk of contracting severe COVID-19.

At the recommendation of an independent Data Monitoring Committee and in consultation with the US FDA, the recruitment into the study is being stopped early due to these positive results.

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Merck plans to submit an application for Emergency Use Authorisation (EUA) to the US FDA soon and marketing applications to other regulatory bodies worldwide.

ICICI Securities said, “The impending US FDA EUA approval (very likely possibility) bodes well for Divi’s Labs as the company is the authorised manufacturer for Molnupiravir API."

At 14:31 IST, shares of Divi’s Laboratories were up 7.6 percent on the BSE at Rs 5,196.90.

So far in 2021, the stock has gained over 35 percent, outperforming the near 27 percent returns given by the Nifty50.

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