Headlines
Merck shells out $10 billion for Verona in bid to diversify beyond Keytruda
Published by Global Banking & Finance Review®
Posted on July 9, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 9, 2025
2 min readLast updated: January 23, 2026
Merck is acquiring Verona Pharma for $10 billion to diversify its drug portfolio beyond Keytruda, focusing on respiratory treatments.
(Reuters) -Merck will buy UK-based Verona Pharma for about $10 billion, the companies said on Wednesday, strengthening the U.S. drugmaker's respiratory treatments as part of efforts to reduce dependence on its blockbuster cancer treatment.
Keytruda, the world's top-selling drug with nearly $30 billion in revenue last year, is nearing key patent expirations from 2028, and Merck has doubled down on efforts to reshape its portfolio.
Since 2021, the company has nearly tripled its late-stage pipeline, combining in-house development with acquisitions such as the $11.5 billion purchase of Acceleron in 2021, which netted the pulmonary arterial hypertension drug Winrevair.
Wednesday's acquisition is Merck's first of the year and its largest since its $10.8 billion buyout of Prometheus Biosciences in 2023.
The deal gives control of Ohtuvayre, a newly approved treatment for chronic obstructive pulmonary disease, a condition commonly called "smoker's lung".
The inhaled drug has generated sales of $42.3 million in 2024 and analysts have estimated it could exceed $3 billion in annual revenue.
Merck will pay $107 per American depository share for Verona, a premium of 23% to the London-based company's last close on the Nasdaq.
Shares in Verona surged 20% in premarket trading, while Merck edged slightly higher.
"Merck deal looks good at first glance. Given their home run with Prometheus and Winrevair, this (Ohtuvayre) looks like a potential complementary therapy," said Kevin Gade, chief operating officer at Bahl & Gaynor.
His sentiment was shared by others including BMO Capital Markets analyst Evan Seigerman. However, Seigerman added a note of caution, saying more is needed to assure investors of a smooth transition of revenue without a strong decline after Keytruda expiry.
The Financial Times first reported that Merck was nearing a deal to acquire Verona.
(Reporting by Christy Santhosh, Sriparna Roy, Kanjyik Ghosh and Mrinalika Roy in Bengaluru; Editing by Nivedita Bhattacharjee, Arun Koyyur and Sriraj Kalluvila)
Merck will acquire Verona Pharma for approximately $10 billion.
Ohtuvayre is a newly approved treatment for chronic obstructive pulmonary disease and is expected to generate significant revenue, with estimates suggesting it could exceed $3 billion annually.
Analysts generally view the deal positively, noting its potential to complement Merck's existing therapies, although some expressed caution regarding the transition.
Following the announcement of the acquisition, shares in Verona surged by 20% in premarket trading.
Keytruda, Merck's top-selling drug, is nearing key patent expirations starting in 2028, prompting the company to diversify its portfolio through acquisitions like Verona.
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