2 Biotech Stocks A Congressman Is Betting On With Omicron Variant Emerging

Members of U.S. Congress are free to buy and sell stocks as long as the moves are disclosed within 45 days of the transaction. This practice has been controversial over the years, with members of Congress who make decisions on key policies and department spending often having an inside line on companies that could benefit. 

A member of Congress recently disclosed two biotechnology stock transactions at a time when investors are looking for companies with exposure to COVID-19 treatments. Here is a look at two biotech stocks that were purchased.

What Happened: U.S. Congressman Bob Gibbs has represented the state of Ohio as a Republican House of Representatives member since 2013.

Gibbs disclosed that he purchased shares of Abbvie Inc ABBV and Merck & Co Inc MRK on Nov. 26, flagged by Congresstrading on Twitter.

Both purchases were of stock and totaled $1,000 to $15,000, respectively. 

Two Biotech Stocks: Merck has made headlines recently with Adcom backing the company’s oral COVID-19 pill. The FDA could soon give emergency use authorization for molnupiravir, the company’s pill that has generated many headlines. The Adcom voted 13-10 in favor with the benefits outweighing the risk of the oral COVID-19 pill.

Merck’s pill previously showed that it was active against variants of the virus, which could put the pill even more in the spotlight given the rise of the COVID-19 omicron variant. Merck is seeking approval of the pill for treatment of COVID-19 and as a preventative measure.

Abbvie is working on several COVID-19 treatments and partnerships including an antibody treatment in trials. The company is a member of the Accelerating COVID-19 Therapeutic Interventions and Vaccines partnership and the COVID R&D Alliance.

Working with Harbour BioMed, Abbvie developed an antibody therapeutic to prevent and treat COVID-19.

While not as advanced in COVID-19 treatment options, Abbvie is working on ways to combat the infection and spread of COVID-19.

Related Link: Congresstrading Highlights Changes That Could Help Pelosi's New Trade And Crypto Disclosure 

Why It’s Important: Gibbs was one of many Congress members who were active in stock purchases in 2020.

Gibbs also made headlines recently for buying shares of Exxon Mobil XOM after defending oil executives who were testifying before the House Oversight and Reform Committee.

The disclosure was made in the proper time frame, but came with a potential biased take on the oil industry. Forbes reported that Gibbs received $42,000 from oil industry companies in campaign donations.

Gibbs is a member of the Transportation and Infrastructure Committee.

ABBV, MRK Price Action: ABBV shares are up 2.83% to $118.54.

MRK shares are up 1.92% to $76.30.