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The results, described as a "major breakthrough" by scientists leading the UK-led clinical trial known as 'Recovery', suggest the drug should immediately become standard care in patients treated in hospital with the pandemic disease, the researchers said.
"This is a result that shows that if patients who have Covid-19 and are on ventilators or are on oxygen are given dexamethasone, it will save lives, and it will do so at a remarkably low cost," said Martin Landray, an Oxford University professor who is co-leading the trial.
His co-lead investigator, Peter Horby, said dexamethasone - a generic steroid widely used in other diseases to reduce inflammation - is "the only drug that's so far shown to reduce mortality - and it reduces it significantly".
"It is a major breakthrough," he said.
There are currently no approved treatments or vaccines for Covid-19, the illness caused by the new coronavirus which has killed more than 431,000 globally.
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