Merck to acquire London-based Verona Pharma for $10 billion
Merck announced on Wednesday that it will acquire the UK-based lung therapy company Verona Pharma for approximately $10 billion.
This strategic move aims to bolster Merck's respiratory treatment offerings, as the U.S. pharmaceutical giant seeks to diversify its revenue streams beyond its highly successful cancer drug portfolio, News.Az reports, citing CNBC.
Merck has been leaning on its aging cancer immunotherapy Keytruda, the world’s top-selling prescription medicine, which generated nearly $30 billion in sales in 2024, but faces patent expiries starting in 2028.
In response, the company has ramped up deal-making to broaden its revenue base. The latest deal is Merck’s largest since its $10.8 billion buyout of Prometheus Biosciences in 2023.
It builds on the company’s portfolio of chronic lung disease treatments, including recently approved Winrevair and Enflonsia.
Merck will pay $107 per American depository share for London-based Verona, a premium of 23% to Verona’s last closing price on the Nasdaq. Verona’s U.S.-listed shares jumped 20% in premarket trading.
Verona, which is also listed in Frankfurt, rose into prominence with the approval of its inhalable, non-steroid treatment Ohtuvayre for patients with chronic obstructive pulmonary disease, also known as “smoker’s lung”, a common lung disease affecting nearly 16 million Americans.
Ohtuvayre was approved last year and brought in annual sales of $42.3 million. Jefferies analysts expect the drug to have peak annual sales of more than $3 billion.
The Financial Times first reported that Merck was nearing a deal to acquire Verona. Last month, FT reported that Merck held talks to buy Swiss biotech MoonLake Immunotherapeutics for more than $3 billion.
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