Analysis of Merck share price for trading

Whatever the period and the global economic health, the shares of companies in charge of pharmaceutical production are always very popular with investors due to a high level of demand and a certain constancy marked by peaks linked to innovation. Here, we'll be presenting the Merck company stock and give you some useful information that will help you better trade it.  

Trade Merck shares!
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Our advice for trading Merck share

Tip number 1

First of all, all the innovations of the medical and pharmaceutical sector worldwide should be monitored and not only for the Merck group.

Tip number 2

You should also closely monitor the investments made by Merck in order to position itself in the underdeveloped and developing countries that have enormous health needs as well as the evolution of its situation in emerging markets.

Tip number 3

The Merck group could also use its vast expertise and various resources to develop sustainable solutions in countries around the world.

Tip number 4

You should also keep a close eye on the developments and innovations of the Merck group and in particular its research partnerships.

Tip number 5

Finally, it goes without saying that the particularly tenacious competition in this sector of activity should also be watched.

Trade Merck shares!
75% of retail investor accounts lose money when trading CFDs with this provider.

General presentation of Merck:

The Merck group is one of the leading names in the pharmaceutical industry, specializing in the design, production and marketing of therapeutic products and vaccines. The activity which brings in the most turnover is the sale of pharmaceutical products. Next comes the vaccine sales, and other complementary activities.

The market most targeted by Merck is the United States, but this group also works a lot with Europe, the Middle East, Africa and Japan.

 

Knowing Merck shares competition:

The Merck group is one of the leaders in the pharmaceutical sector worldwide, particularly with regard to vaccines. Here are its main competitors which you should take into account when analysing its share price.

  • The Pfizer Group : an American pharmaceutical company present in over 150 countries, is the world leader in its sector with a turnover amounting to 51.58 billion dollars.
  • GlaxoSmithKline : (known as GSK), a British multinational, number 7 in the global pharmaceutical industry. It's the result of the merger between Glaxo Wellcome and SmithKline Beecham in 2000.
  • Bristol-Myers Squibb (BMS): American pharmaceutical company established in 1989 through the merger between the Bristol-Myers Company and the Squibb Corporation. It's the ninth largest pharmaceutical group in the world.
  • Eli Lilly and Company: Pharmaceutical group, ranked tenth in the world (in 2010) by its turnover.
  • Amgen Inc.: World leading American company in the medical biotechnology industry. Its headquarters are located in Thousand Oaks, California.

 

The strategic alliances set up by the Merck group:

To succeed in your Merck share price analysis, it's also essential to know the main worldwide partners of this group. Check out the major partnerships set up by Merck in the past.

  • The Sanofi group : first created a joint venture in 1994 to develop and market vaccines from the research of both companies and sell them in 19 European countries.
  • Sun Pharmaceutical: In 2011, Merck and Sun Pharmaceutical, an Indian company specializing in the pharmaceutical sector, announced the creation of a joint venture aimed at designing, manufacturing and marketing new combinations and preparations of generic drugs on the market of emerging countries.

 

Introduction and stock quote of the Merck share:

The Merck share is listed on Euronext Paris. But its price is also included in the calculation of the Dow Jones stock market index (DJIA).

Looking at the stock charts, the Merck share price seems to follow an overall upward trend since 2009 and also shows many micro-movements ideal for online trading.

 

Economic history

  • In 2005, Merck made an annual profit of over 658 million euros.
  • In 2006, Merck faced Bayer for the acquisition of Schering. In the end, MSD bought the group with a more attractive offer. The same year, the group bought 64.5% of Serono for € 10.6 billion and the company became Merck Serono.
  • In 2007, Mylan acquired Merck's generics arm for $ 6.6 billion.
  • In 2010, Merck took over the American company Millipore specializing in electronic equipment for $ 6 billion.
  • In 2013, Merck bought British AZ Electronic Materials for £ 1.6 billion.
  • In 2014, the group bought American Sigma-Aldrich specializing in fine chemicals for $ 17 billion.
  • In 2015, the Darmstadt firm bought the American group, Ormet Circuits for an unknown amount. As the German group specializes in the production of performance materials such as liquid crystals, it hopes to benefit from the expertise of this specialist in semiconductors.

 

The advantages and strengths of the Merck share as a stock exchange asset :

The first great advantage of the Merck Group is its brand name, which is known worldwide. The Merck brand is one of the strongest brands in the pharmaceutical industry, which makes it easier to market its products and promote them to physicians and specialists.

In addition, the Merck group has a particularly large and, above all, highly diversified portfolio of pharmaceutical products and treatments. This enables it to reach different segments of the population and to offer solutions to a wide range of health problems and illnesses.

Merck's brand image is also positively supported by the company's charitable activities, especially in the United States, where Merck provides free medical aid to the most disadvantaged people.

Of course, Merck also invests a great deal of money in research and development every year, making it an innovative pharmaceutical company and setting it apart from the competition in this sector.

The strong international presence of the Merck Group is also appreciated, as it markets its products throughout Europe as well as in Africa, Asia, Oceania and Latin America. Through its various laboratories and research centers but also for the commercial part, Merck employs more than 40,000 people worldwide.

 

Disadvantages and weaknesses of the Merck share as a stock exchange asset :

Of course, the Merck group not only has advantages and arguments in its favor, but also some weaknesses that you have to compare with its strengths in order to carry out an effective fundamental analysis of the stock. Here is a list of the main weaknesses.

First of all, the Merck group regularly suffers from problems of imitation of its main drugs, which have had the effect of affecting its brand image and thus lowering the confidence of consumers who have become more distrustful. This has had a non-negligible impact on the group's sales and profitability.

Finally, the group's second major weakness this time is that it has not yet managed to position itself sufficiently effectively in emerging markets. Brand recall in these economies remains too low for Merck, which is largely overtaken by the competition. This represents a considerable shortfall compared to the opportunities in these high-demand markets.

How to trade the Merck share price?

The best way to speculate on the development of an up or down trend of the Merck share price is to use an online trading platform offering CFDs.

Trade Merck shares!
75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.