Merck Considering Acquisition of Verona Pharma for $10 Billion

Merck & Co. is considering acquiring Verona Pharma for $10bn, expanding its pharmaceutical product portfolio. The deal would add to Merck's existing product lines in treating hypertension, osteoporosis, and respiratory diseases. Verona Pharma's products include the dry powder inhaler for chronic obstructive pulmonary disease (COPD) and asthma. The acquisition would enhance Merck's presence in the respiratory disease market.

Merck & Co., Inc. is reportedly close to finalizing a $10 billion acquisition of Verona Pharma, a biopharmaceutical company specializing in respiratory diseases. The deal, which would see Merck paying $107 per American Depositary Share for Verona, is valued at around $10 billion [1, 2, 3]. This acquisition is part of Merck's strategic move to diversify its revenue streams as patents for its top-selling drug, Keytruda, are set to expire in 2028 [1, 3].

Verona Pharma's primary product, Ohtuvayre, is an inhalable treatment used for chronic obstructive pulmonary disease (COPD), which has generated over 96% of the company’s $76 million revenue in the first quarter of 2025 [2]. This acquisition would enhance Merck's presence in the respiratory disease market, complementing its existing product lines in treating hypertension, osteoporosis, and other conditions.

Merck's recent deal-making activities include talks to buy Swiss biotech MoonLake Immunotherapeutics for more than $3 billion and a licensing agreement for a heart disease drug with Jiangsu Hengrui Pharmaceuticals worth up to $2 billion [1, 3]. These moves underscore Merck's strategy to expand its portfolio and mitigate the impact of the impending patent cliff for Keytruda.

The acquisition would also accelerate the international launch of Verona’s therapy, Ohtuvayre, which treats COPD, a chronic lung condition. This deal would be Merck’s largest since 2023, when it bought Prometheus Biosciences for $10.8 billion [2].

Verona Pharma reported a total net revenue of $76.3 million in the first quarter of 2025, with its shares closing at $86.9 on Tuesday, giving it a market cap of about $7.39 billion [3]. Merck's shares, valued at over $204 billion as of Tuesday, have seen a decline of over 18% this year [3].

The acquisition is subject to regulatory approvals and other customary closing conditions. Both Merck and Verona have not yet responded to requests for comment [1, 2, 3].

References:
[1] https://m.economictimes.com/news/international/business/merck-nears-10-bn-deal-for-respiratory-drugmaker-verona-reports/articleshow/122335036.cms
[2] https://uk.investing.com/news/stock-market-news/meck-looks-to-soften-impact-of-keytruda-cliff-with-10bn-tilt-for-verona-pharma-4161814
[3] https://finance.yahoo.com/news/merck-nears-10-billion-deal-050901241.html