Meanwhile, Ivermectin, from the same company (Merck), remains banned because "not enough studies have been done". How can you develop a whole new drug that's 30% effective, may create new variants/cause birth defects - then push that over a proven safe/cheap drug that appeared to be very effective in India?

Simple. Cheap and effective is not conducive to profit, while expensive and marginally effective is very conducive to profit.

From Merck Sells Federally Financed Covid Pill to U.S. for 40 Times What It Costs to Make:
A five-day course of molnupiravir, the new medicine being hailed as a “huge advance” in the treatment of Covid-19, costs $17.74 to produce, according to a report issued last week by drug pricing experts at the Harvard School of Public Health and King’s College Hospital in London. Merck is charging the U.S. government $712 for the same amount of medicine, or 40 times the price.

And then there's this from the Guardian: Merck wants Americans to pay $712 for a Covid drug that taxpayers helped develop

And those health threats? Small potatoes. In fact, as long as they're not too distasteful, they might even generate more profit because they'll need to be treated!