Influence of Merck KGaA on the DAX 40
Merck KGaA has a weighting of approximately 1.25% in the DAX 40 (measured in December 2024). View the composition of the DAX 40 and the weighting of all companies in the DAX 40 here. As a leading company in both biotech and electronics, Merck influences various index sectors. The share price reacts strongly to developments in the pharmaceutical pipeline, scientific breakthroughs and global trends in semiconductor manufacturing. Investments by biotech startups and academic institutions - often customers of Merck - also contribute to market sentiment around the stock. Furthermore, the geopolitical environment, particularly with respect to China and the U.S., plays a role in the group's valuation.
Investment analysis & outlook
Merck experienced a difficult stock market year in 2024, with a share price decline of about 31%. This decline was mainly caused by weakening demand in the electronics division, combined with rising costs and pressure on margins within Life Science. The attached price chart clearly shows the peak in early 2022, when the stock benefited from strong growth in biotech products and laboratory technology, especially during and immediately after the corona pandemic.
From mid-2022, however, the stock began a downward trend, falling more than 40% from its peak. Macroeconomic uncertainties reinforced this trend, disappointing chip sales and falling margins. While the broader DAX 40 index has since recovered strongly, Merck clearly lags. The DAX has risen more than 79% since 2020, while Merck currently stands at around a 6% gain. Still, Merck's fundamental position remains solid. Its biotechnology division is a key driver of growth, and its pharmaceutical pipeline contains promising treatments for cancer and immune diseases, with several potential drugs in advanced clinical stages.
Looking ahead to 2025, analysts expect a recovery fueled by rising investments in biotech, an expected resurgence in the chip industry and a more predictable regulatory environment for pharmaceuticals. Merck is also focusing on AI-driven drug development, automation of laboratory processes and the pursuit of climate-neutral manufacturing, which are strategic choices that can strengthen its long-term competitive advantage.
News & updates
In May 2025, Merck announced a strategic collaboration with a French biotech startup to jointly develop RNA-based therapies. It was also announced that Merck is investing €3 billion to expand production facilities for both chip chemicals and biotech products in Germany and the US.
The proposed dividend for 2024 is €2.20 per share, underscoring Merck's long-term vision of shareholder value. At the same time, the company presented new ESG goals, including climate neutrality by 2040 and greater transparency in clinical data. Merck thus positions itself as a sustainable innovator at the intersection of science, technology and biotechnology.
Disclaimer: Investing involves risk. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. They are therefore for educational purposes only.