Here's an option using TikZ and its tikzmark
and fit
libraries
\documentclass{beamer}
\usepackage{tikz}
\usetikzlibrary{tikzmark,fit}
\begin{document}
\begin{frame}{Focus on Merkel Cells}
\begin{itemize}
\item \textbf{1875}: Merkel cells discovered by Friedrich Merkel
\item \textbf{1969}: Merkel cell-neurite complexes implicated in
touch reception
\item \textbf{1969-2014}: Unresolved debate
\begin{enumerate}
\item A$\beta$ SAI neurons are mechanoreceptive (analagous to
olfaction and all other LTMRs)
\item Merkel cells are mechanoreceptive (analagous to taste and
hearing)
\item \alert{\textbf{Both are mechanoreceptive: \tikzmark{start}A$\beta$ SAI rapid\tikzmark{end}, Merkel
sustained}}
\end{enumerate}
\item \textbf{2014}: Explosion of new evidence
\end{itemize}
\begin{tikzpicture}[remember picture,overlay]
\node<2>[draw,line width=2pt,cyan,circle,fit={(pic cs:start) (pic cs:end)}] {};
\end{tikzpicture}
\end{frame}
\end{document}
The result (compile two or three times to the circle to reach its final position):
Since TikZ and beamer
cooperate, you can use overlays as in, for example,
\node<2>[draw,line width=2pt,cyan,circle,fit={(pic cs:start) (pic cs:end)}] {};
so the circle will appear on the second slide.

Using an ellipse (requires the shapes.geometric
library):
\documentclass{beamer}
\usepackage{tikz}
\usetikzlibrary{tikzmark,fit,shapes.geometric}
\begin{document}
\begin{frame}{Focus on Merkel Cells}
\begin{itemize}
\item \textbf{1875}: Merkel cells discovered by Friedrich Merkel
\item \textbf{1969}: Merkel cell-neurite complexes implicated in
touch reception
\item \textbf{1969-2014}: Unresolved debate
\begin{enumerate}
\item A$\beta$ SAI neurons are mechanoreceptive (analagous to
olfaction and all other LTMRs)
\item Merkel cells are mechanoreceptive (analagous to taste and
hearing)
\item \alert{\textbf{Both are mechanoreceptive: A\tikzmark{start}$\beta$ SAI rapi\tikzmark{end}d, Merkel
sustained}}
\end{enumerate}
\item \textbf{2014}: Explosion of new evidence
\end{itemize}
\begin{tikzpicture}[remember picture,overlay]
\node[draw,line width=2pt,cyan,ellipse,inner ysep=15pt,fit={(pic cs:start) (pic cs:end)}] {};
\end{tikzpicture}
\end{frame}
\end{document}
