Merck to Buy Verona Pharma in $10 Billion Deal -- Update

Published: 2025-07-09 07:19:08 ET MRK

Published on 07/09/2025 at 07:19

By Colin Kellaher

Merck & Co. has struck a roughly $10 billion deal to buy Verona Pharma, bolstering its lineup with the chronic obstructive pulmonary disease treatment Ohtuvayre as it braces for the 2028 loss of patent exclusivity for the blockbuster cancer drug Keytruda.

Merck on Wednesday said it will acquire Verona for $107 per American depository share, a 23% premium to Tuesday's closing price of $86.86 for the London-based company.

The deal is slated to close by the end of the year.

Merck said Ohtuvayre, which the U.S. Food and Drug Administration approved last year for the maintenance treatment of COPD in adults, adds to its growing cardio-pulmonary pipeline and portfolio. The drug is currently in studies for the chronic respiratory condition non-cystic fibrosis bronchiectasis.

Merck shelled out $11.5 billion in 2021 to acquire Acceleron Pharma and its Winrevair treatment for pulmonary arterial hypertension.

The Verona deal marks Merck's largest acquisition since it bought Prometheus Biosciences for $10.8 billion in 2023.

Merck Chief Executive Rob Davis has previously indicated that the company would continue seeking out multi-billion-dollar deals ahead of the 2028 patent cliff for Keytruda, which generated sales of nearly $29.5 billion last year.

Verona ADSs were recently up 20% to $104.35 in premarket trading, while Merck shares rose 0.6% to $81.37.

Write to Colin Kellaher at [email protected]

(END) Dow Jones Newswires

07-09-25 0718ET