1. Merck and Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 91
Merck & Co., Inc. (NYSE:MRK) tops our list for being the best immunology stock. It is a global pharmaceutical company focused on developing innovative medicines, vaccines, and animal health products. It specializes in cancer, infectious diseases, and immune-mediated inflammatory disorders.
Merck & Co., Inc. (NYSE:MRK) is investing heavily in immunology research to develop novel treatments for autoimmune diseases, focusing on targets like TL1A, IL-2, and CD30L1, while exploring biomarkers to identify responsive patients and developing precise immune modulation methods.
Merck & Co., Inc. (NYSE:MRK) is pursuing therapies for conditions such as multiple sclerosis, systemic lupus erythematosus, and arthritis, targeting both innate and adaptive immune components. The company has made strategic acquisitions, including Prometheus Biosciences for $10.8 billion, and formed partnerships with Curon Biopharmaceutical and Culmination Bio to expand its immunology pipeline. Merck embraces precision medicine and leverages data from Prometheus and applies its oncology expertise to inflammatory bowel disease. Their pipeline aims to transform treatments for chronic conditions and autoimmune disorders, advancing first-in-class therapies through internal and external collaborations.
Merck & Co., Inc. (NYSE:MRK) has received European Commission conditional approval for WELIREG (belzutifan), the first oral HIF-2α inhibitor in the EU, for treating adult patients with von Hippel-Lindau (VHL) disease and advanced clear cell renal cell carcinoma. Despite some challenges, such as halting shipments of its HPV vaccine Gardasil to China until mid-2025, the company continues to perform well. Strong demand for its innovative portfolio, including the cancer drug Keytruda and the newly launched Winrevair for pulmonary arterial hypertension, is driving revenue growth.
GreensKeeper Asset Management, an investment management company, released its Q3 investor letter. Here is what the fund said:
“Merck & Co., Inc. (NYSE:MRK) was our second-largest detractor this quarter, declining -8.3%. MRK’s leading HPV vaccine, GARDASIL 9, faced challenges internationally due to inventory buildup within its Chinese distributor, which is expected to reduce shipments for the remainder of 2024. Despite this short-term impact, the long-term outlook for GARDASIL 9 remains promising. Meanwhile, the company’s $27 billion Keytruda cancer juggernaut continues to grow at a healthy clip, powering earnings growth.”
Overall, Merck & Co., Inc. (NYSE:MRK) ranks first among the 10 best immunology stocks to buy now. While we acknowledge the potential of MRK, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MRK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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