In this article we will list the Goldman Sachs Healthcare Stocks: Top 5 Stock Picks. Please visit Goldman Sachs Healthcare Stocks: Top 10 Stock Picks if you’d like to see an extended list and how we came up with the list of best value stocks.
5. Abbott Laboratories (NYSE:ABT)
Goldman Sachs Equity Stake: $1.93 Billion
Abbott Laboratories (NYSE:ABT) is one of Goldman Sachs top healthcare stocks. On March 10, Abbott Laboratories (NYSE:ABT) confirmed the launch of its most advanced generation stent, XIENCE Skypoint, in India. The launch is designed to equip doctors in the country with stents that can reach difficult areas and treat a wide range of blockages.
XIENCE Skypoint stents are more flexible and easier to guide through heart arteries, including large vessels. Expected to be of great benefit to doctors treating cardiovascular diseases, the stents are also suited for treating complex heart blockages.
XIENCE Skypoint stands out for its slim, smooth delivery system, which helps doctors guide the stent through the vessel. It also includes a left main indication that helps doctors treat critical segments of the coronary artery.
Abbott is to offer the broadest matrix ever from the XIENCE family to support the treatment of long lesions. It will also help reduce the number of stents required per procedure. The ultimate goal is to offer doctors more options and patients greater confidence to support long-term heart health.
Abbott Laboratories (NYSE:ABT) is a diversified global healthcare company that develops, manufactures, and markets products across four core segments: medical devices, diagnostics, branded generic pharmaceuticals, and nutritional products for all ages.
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.
3. AbbVie Inc. (NYSE:ABBV)
Goldman Sachs Equity Stake: $2.96 Billion
AbbVie Inc. (NYSE:ABBV) is one of Goldman Sachs top healthcare stocks. On March 9, William Blair reiterated an Outperform rating on AbbVie Inc. (NYSE:ABBV). The research firm remains confident about the company’s prospects following positive clinical trial results on a crucial obesity treatment.
The company announced top-line results from the Phase 1 multiple-ascending-dose study of ABBV-295. It is trialing the candidate long-acting amylin analog in the treatment of obesity. The results showed a 10% weight loss after 12 weeks in patients treated with the drug. The topline result is competitive across the amylin class at a time when the company is increasingly expanding its pipeline beyond oncology drugs.
Analysts at BMO have also touted the positive outlook for obesity drugs, which are expected to strengthen and diversify the company’s portfolio. The company has already announced a $380 million investment as it seeks to expand its manufacturing facilities while focusing on neuroscience and obesity drugs.
AbbVie has also delivered topline results from the Phase 3 AFFIRM study of Skyrizi for Crohn’s disease. The results also showed significant improvements in clinical remission and endoscopic response compared to Placebo.
AbbVie Inc. (NYSE:ABBV) is a global research-driven biopharmaceutical company that discovers, develops, and markets advanced therapies for complex, serious health conditions. It focuses on immunology, oncology, neuroscience, eye care, and aesthetics.
2. Johnson & Johnson (NYSE:JNJ)
Goldman Sachs Equity Stake: $3.38 Billion
Johnson & Johnson (NYSE:JNJ) is one of Goldman Sachs top healthcare stocks. On March 10, Johnson & Johnson (NYSE:JNJ) announced the submission of a Type II variation application to the European Medicines Agency. The company is seeking approval of TECVAYLI (teclistamab) as a potential treatment for relapsed and refractory multiple Myeloma.
The company hopes to make TECVAYLI available at a time when patients with multiple myeloma continue to relapse. It hopes the drug will be approved as a potential treatment to improve long-term outcomes and change the course of the disease. The submission is supported by data from the Phase 3 MajesTEC-9 trial, which showed that the safety profile of teclistamab monotherapy was clinically manageable.
The submission follows the European Commission approving an indication extension for AKEEGA in combination with androgen deprivation therapy for the treatment of metastatic hormone-sensitive prostate cancer. The approval introduces a new precision-based treatment option for patients expected to have the greatest impact in helping change the trajectory of the disease.
“This expanded indication for niraparib and abiraterone acetate reflects our commitment to delivering transformative innovation across the prostate cancer continuum,” said Charles Drake, M.D., Ph.D., FAAP, Vice President, Prostate Cancer and Immunotherapy Disease Area Leader, Johnson & Johnson.
Johnson & Johnson (NYSE:JNJ) is a diversified global healthcare company that develops, manufactures, and sells products in two primary segments: Innovative Medicine (pharmaceuticals) and MedTech (medical devices).
1. Eli Lilly and Company (NYSE:LLY)
Goldman Sachs Equity Stake: $6.38 Billion
Eli Lilly and Company (NYSE:LLY) is one of Goldman Sachs top healthcare stocks. On March 10, analysts at Bernstein SocGen reiterated an Outperform rating on Eli Lilly (NYSE:LLY) with a $1,300 price target. The positive stance comes on the heels of the company launching the Employer Connect platform to enhance access to its obesity medications through employer-sponsored programs.
The company has already partnered with 15 program administrators, including GoodRx and Mark Cuban’s Cost Plus Drugs, to enable employers to activate the GLP-1 coverage insurance platform for their staff. The unveiling of the new platform is part of an effort to capitalize on limited commercial insurance coverage. The new platform will expand GLP-1 coverage by enabling employers to customize coverage and wraparound services for employees. It also provides a way to share costs and lower employer expenses.
The launch of the new platform follows Mounjaro’s prescription reaching 724,500 and 361,000 new prescriptions for the week ending February 27, affirming strong interest in the company’s GLP-1 medications.
Eli Lilly and Company (NYSE:LLY) is a global healthcare company that discovers, develops, manufactures, and markets human pharmaceutical products, focusing on areas like diabetes, obesity, oncology, and immunology.
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