- 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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