2. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 96
Merck & Co., Inc. (NYSE:MRK) is the second-best defensive stock according to Reddit. Merck & Co., Inc. (NYSE:MRK) is a pharmaceutical company headquartered in the United States. The company specializes in the production of vaccines and the provision of hospital care services. Keytruda, its drug for cancer, is the company’s best-selling product and is a global star.
In the second quarter of 2024, the company’s Human Health business grew by 11%, its Animal Health segment saw a 6% increase in sales, and KEYTRUDA, its star cancer drug, went up by 21% reaching $7.3 billion in sales. On the vaccines front, its GARDASIL logged $2.5 billion in sales, up by 4%, year-over-year, and VAXNEUVANCE, its pneumococcal vaccine, expanded sales by 16% to reach $189 million. Overall, the growth in sales was brought in by rapid launches in international markets.
Merck & Co., Inc. (NYSE:MRK) is an important company in the industry. Its new drug, CAPVAXIVE, a pneumococcal conjugate vaccine for adults just received approval from the FDA, followed by its ACIP recommendation. The two medical innovations are breakthroughs for patients. The company also closed its acquisition of EyeBio, in an attempt to venture into the ophthalmology industry and invent a treatment for retinal conditions. Its Animal Health segment also closed the acquisition of Elanco’s aqua business, presenting Merck & Co., Inc. (NYSE:MRK) as a leader in the animal health business.
Merck & Co., Inc.’s (NYSE:MRK) commitment to innovation is its economic moat. The company launched a new vaccine for adult patients with pulmonary arterial hypertension, WINREVAIR. The vaccine was only approved by the FDA on March 26 and logged over $70 million in sales in the quarter. 40% of these sales came from doses administered to patients and the remainder to distributors.
Analysts are bullish on MRK and their 12-month median price target of $141 points to a 20% upside from current levels. In Q2 2024, there were 96 hedge funds that held positions in the stock with total stakes amounting to $7.76 billion. As of June 30, Fisher Asset Management was the largest shareholder with a position worth $1.77 billion.
Baron Funds’ Baron Health Care Fund stated the following regarding Merck & Co., Inc. (NYSE:MRK) in its first quarter 2024 investor letter:
“Global pharmaceutical company Merck & Co., Inc. (NYSE:MRK), Inc. contributed on the continued growth of Keytruda, the company’s key asset and the leading immuno-oncology agent used to treat a variety of cancers. The FDA’s late March approval of pulmonary arterial hypertension drug sotatercept, also drove share gains. We retain conviction as Merck has started to transition from prioritizing its Keytruda franchise to building a more diversified business, with a focus on the Gardasil vaccine, pneumococcal vaccine development, and cardiovascular drug development, well in advance of the scheduled expiration of patent protection/exclusivity rights.”
