German Merck is most likely to lose the battle against the Switzerland’s Novartis AG. As per the reports, the Food and Drug Administration (FDA) has asked Merck to produce concrete evidence to study the potential effects of the multiple sclerosis (MS) pill cladribine on the health of patients.

With 2.5 million people affected by lethal MS, the newly proposed drug was projected as a savior for the patients. Receiving the disapproval from the U. S. regulator, Merck is planning to make another attempt to garner sound support for the aforementioned drug so that it stays as a competitive player in the US market.

As the German Merck is struggling to retain its market position for its older injected treatment Rebif, this recent development has certainly thrashed the growth trajectory.

With the news hitting the market, the shares of Merck are reported to have nosedived by 2.5% in Frankfurt trading, and the trend is likely to continue in the near future. Moreover, the overall sales profit is expected to get a blow with this rejection.

If Chief Executive Officer, Karl-Ludwig Kley is to be believed, Merck’s sales this year is likely to move somewhere between 10-15% in comparison to the expected jump to 18% from current 13%, had FDA approved the Merck’s proposal.