Merck KGaA shares fell 1.45% on Thursday. The stock closed at €136.35, underperforming the German DAX index. UBS downgraded the healthcare and technology company to neutral from buy.
The bank maintained its price target of €150. Analysts stated the recent stock rally brought the valuation in line with fair value.
UBS warned of rising risks in the Healthcare division. The high-margin Mavenclad franchise faces increasing generic competition. Specialty oncology drug Ogsiveo also faces potential competitive pressure.