5 Stocks Warren Buffett Sold

2. Merck & Co Inc (NYSE:MRK)

Stock returns since Warren Buffett sold: 43.88%
SPY total return in the same period (annualized return): 10.91%
Number of Hedge Fund Holders: 77

Merck & Co Inc (NYSE:MRK) is a global pharmaceutical company that develops, manufactures, and markets prescription medicines, vaccines, biological therapies, and animal health products. Berkshire first invested in Merck & Co Inc (NYSE:MRK) in Q3 2020 and held a stake of about 0.5% as of Q4 2020. However, it offloaded the entire stake in Q3 2021, along with its stakes in two other drugmakers, AbbVie Inc and Bristol-Myers Squibb Co.

In its Q4 2022 investor letter, Aristotle Capital Management, LLC provided the following statement regarding Merck & Co., Inc. (NYSE:MRK):

“Founded in 1891 and headquartered in New Jersey, Merck & Co., Inc. (NYSE:MRK) is one the world’s largest pharmaceutical firms. The company’s drugs are used to treat conditions in a variety of areas, including oncology (~38% of revenue), vaccines (~19%), diabetes (~11%), animal health (~11%), and others (~21%). Merck produced over $48 billion in sales in 2021, just under half of which was generated in the United States. Within oncology, the firm’s immuno-oncology platform is becoming a major contributor to overall sales, driven by the blockbuster1 drug Keytruda. The company’s vaccine business is also significant. It includes Gardasil for preventing HPV (the disease that can lead to cervical cancer in women), as well as vaccines for hepatitis B, pediatric diseases, and shingles. In recent years, Merck has been shifting its focus toward unmet medical needs in specialty-care areas. As part of this shift in focus, in June 2021, Merck received $9 billion from the spinoff of its women’s health, established brands, and biosimilars businesses into the now independent, publicly traded company Organon…” (Click here to read the full text)