Merck KGaA to join Germany's DAX

German drugmaker Merck KGaA is to be listed on the DAX index of 30 leading companies in Frankfurt from June 18. Merck's share price improved only slightly - up less than 0.1% on the news, to reach 38.40 euros but this compares with just 20.00 euros five years earlier.

Local analysts said that, after the company's 2.0 billion-euro ($2.69 billion) capital increase to complete the acquisition of Swiss biotechnology firm Serono its listing became a formality. Merck's market valuation is now put at 6.4 billion euros.

Meanwhile, Merck presented a new study on Erbitux (cetuximab) at the recent American Society of Clinical Oncology meeting in Chicago (Marketletter June 11) showing that the drug, in combination with chemotherapy, can reduce cancerous colon tumors sufficiently to enable surgery to be undertaken. Drug industry analysts suggest that Erbitux could add around 400.0 million euros of additional revenue annually for the drugmaker.