Goldman Sachs Healthcare Stocks: Top 5 Stock Picks

4. Merck & Co., Inc. (NYSE:MRK)

Goldman Sachs Equity Stake: $2.03 Billion

Merck & Co., Inc. (NYSE:MRK) is one of Goldman Sachs top healthcare stocks. On March 3 at the TD Cowen 46th Annual Health Care Conference, Merck & Co., Inc. (NYSE:MRK) unveiled strategic initiatives to mitigate the loss of exclusivity of its blockbuster drug, KEYTRUDA. The company expects a shallow dip in revenues from the flagship drug as its exclusivity ends.

The strategic initiatives focus on innovation to transform the current portfolio through new products. The company is already expanding its oncology pipeline while also exploring new treatment options in cardiovascular and other therapeutic areas. Some of the new products slated for launch include WINREVAIR, OHTUVAYRE, CAPVAXIVE, INFLUENZA, and QULEX.

MK-1406 clinical trials for influenza prevention are ongoing in the Southern Hemisphere, while V940, a neoantigen therapy, is under development, with a melanoma readout expected in 2028. It is also working on MK-3000, which targets patients with diabetic macular edema and neovascular AMD.

Merck is also developing over 20 new growth drivers in the human health business as it targets $70 billion in commercial opportunity. The company is also pursuing strategic business development to double animal health revenue by mid-2030.

Merck & Co., Inc. (NYSE:MRK) is a leading, research-intensive global biopharmaceutical company that discovers, develops, and manufactures prescription medicines, vaccines, and biologic therapies. It specializes in human health—particularly oncology, infectious diseases, and immunology—while also providing animal health products.