Shares of Everest Organics jumped as much as 11.6 per cent after the news came in, and were last up 9.9 per cent at ₹ 330 in a weak Mumbai market. The Indian bulk drugs manufacturer joins Divi's Laboratories Ltd as an API maker for Merck's experimental oral drug.
Merck has separately entered into voluntary licensing agreements with at least eight Indian generic drugmakers for molnupiravir, with an aim to turn the country into a manufacturing hub for the drug.
"After the successful development and commercialisation of various COVID-19 drugs such as Oseltamivir, Remdesivir...Everest Organics is on its path of expansion of this portfolio," Chief Executive Officer Srikakarlapudi Sirisha said in a statement.
Merck said on Monday it had sought U.S emergency use authorisation for the drug, putting molnupiravir on course to become the first oral antiviral medication for COVID-19. The U.S authorisation application was based on data released earlier this month by Merck and partner Ridgeback Biotherapeutics.