Merck to Acquire Verona Pharma in Major Respiratory Deal
- Admin
- Jul 9
- 2 min read
The U.S. pharmaceutical giant Merck & Co. has announced plans to acquire UK-based Verona Pharma in a deal valued at approximately $10 billion, as part of its ongoing strategy to expand beyond its blockbuster cancer drug Keytruda.
The acquisition will bolster Merck’s position in the respiratory treatment market, adding Verona’s innovative therapies for chronic lung diseases to its growing portfolio. This marks Merck’s largest transaction since its $10.8 billion acquisition of Prometheus Biosciences in 2023.
Verona Pharma, headquartered in London and listed on both Nasdaq and Frankfurt exchanges, is best known for its inhalable, non-steroidal treatment Ohtuvayre, approved last year for Chronic Obstructive Pulmonary Disease (COPD) commonly referred to as “smoker’s lung.” COPD affects nearly 16 million Americans and remains one of the most prevalent chronic lung conditions globally.
Merck will pay $107 per American Depository Share (ADS) for Verona, representing a 23% premium over Verona's last closing price. Following the announcement, Verona’s U.S.-listed shares surged 20% in premarket trading.
Ohtuvayre, which generated $42.3 million in annual sales, is projected by analysts at Jefferies to reach peak sales exceeding $3 billion annually. The addition of this product complements Merck’s existing respiratory drugs, including Winrevair and Enflonsia.
The acquisition reflects Merck’s strategic push to reduce its reliance on Keytruda, which brought in nearly $30 billion in sales in 2024 but faces patent expirations starting in 2028. In recent months, Merck has actively pursued biotech deals, including talks to acquire MoonLake Immunotherapeutics for over $3 billion, according to reports.
The deal with Verona Pharma underscores Merck’s commitment to diversifying its revenue streams and strengthening its presence in high-growth therapeutic areas beyond oncology.
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