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Warren Buffett bought 4 Pharma Giants in Q3

Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) filed its Form 13F with the Securities and Exchange Commission on Monday, giving investors a look at what Oracle of Omaha and its team of investors bought in the third quarter.

The list included four pharmaceutical companies: AbbVie (NYSE: ABBV),, Merck (NYSE: MRK),, Bristol Myers Squib (NYSE: BMY), and Pfizer (NYSE: PFE). The first three had a similar purchase size of about $ 1

.8 billion. Pfizer’s purchase was significantly smaller, with a market value of about $ 136 million.

Warren Buffett

Image source: Motley Fool.

Within the industry, there seems to be no topic among the four drug manufacturers.

Merck and Bristol Myers are strong in oncology. Bristol Myers expanded its cancer treatment last year with the acquisition of Celgene. Merck hangs its hat on Keytruda with plans to launch drugs for women’s health and cardiovascular health, as well as some other brands at Organon & Co. next year.

AbbVie seeks to diversify away from its dependence on its megablockbuster Humira, which treats various inflammatory disorders. The pharmaceutical company made a big move in dermatology with the acquisition of Allergan, the manufacturer of Botox, which closed earlier this year.

Pfizer is currently best known for its coronavirus vaccine, but the pharmaceutical giant is quite diverse. Like Merck, Pfizer is looking to focus more by merging its Upjohn generics business with Mylan into a new company called Viatris, which is set to start trading on Tuesday. Investors will have to wait for the next 13F form to see what Buffett is doing with Viatris shares received from all Pfizer shareholders.

Pharmaceutical companies have one thing in common: they’ve all been trading at their peak for all time and have been all over 2020, suggesting that Buffet may be a bargain.

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