Benzinga | Nov 18, 2021 07:55AM EST

Berkshire Exited Merck Before COVID Pill Boost; Trimmed Holdings In AbbVie, Bristol Myers In Q3

* Warren Buffett's Berkshire Hathaway Inc (NYSE: BRK-A) cleared its stake in Merck & Co Inc (NYSE: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 (NYSE: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 (NYSE: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 (NYSE:ABBV) and Bristol Myers Squibb & Co (NYSE: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.