Berkshire Exited Merck Before COVID Pill Boost; Trimmed Holdings In AbbVie, Bristol Myers In Q3

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  • Warren Buffett's Berkshire Hathaway Inc (NYSE: BRK-A) cleared its stake in Merck & Co Inc MRK in Q3, right on the eve of a significant stock price boost thanks to the Phase 3 success of its Ridgeback Biotherapeutics-partnered COVID-19 pill molnupiravir.
  • The molnupiravir data sent Merck's share price from about $75 apiece the previous day to as high as about $84. 
  • Molnupiravir's first authorization by U.K. regulators further increased Merck's price to above $90 before falling below $82 the next day on the news of Pfizer Inc's PFE stronger data for its COVID drug.
  • Before Q3 Merck withdrawal, Berkshire already halved its holding in the company to 9.16 million shares in Q2
  • At that time, Berkshire also reported a stake of 1.55 million shares in Organon & Co OGN.
  • Berkshire also exited that stake in the women's health specialist during Q3.
  • Meanwhile, Berkshire also continued to reduce its ownership in AbbVie Inc ABBV and Bristol Myers Squibb & Co BMY, a securities filing shows.
  • Berkshire owned about 14.4 million shares in Abbvie in Q3, down from roughly 20.5 million shares in Q2 and nearly 22.9 million shares in Q1.
  • AbbVie's stock had been trending primarily upward in 2021 until the FDA unveiled that it would add an updated boxed warning for JAK inhibitors.
  • The FDA scrutiny dragged AbbVie's stock price down to around $107 at the end of September from about $120 in August.
  • Berkshire reduced its stake in BMY to 22 million.
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Posted In: BiotechNewsHealth CareHedge FundsGeneralBriefs
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