Merck to Buy Verona Pharma for $10 Billion

Merck has announced an agreement to acquire British biopharmaceutical company Verona Pharma for approximately $10 billion, in an all-cash deal offering $107 per American depositary share—a 23% premium over Verona's last closing price. The acquisition focuses on Ohtuvayre, Verona's inhaled treatment for COPD, which received FDA approval in June 2024 and is the first new inhaled COPD therapy in over two decades. Analysts now predict Ohtuvayre could achieve blockbuster status, with potential peak annual sales exceeding $4 billion. Merck plans to capitalize most of the purchase price as an intangible asset to be amortized over Ohtuvayre's commercial life. The transaction has received unanimous board approval from both companies and is expected to close in the fourth quarter of 2025, pending regulatory and shareholder approvals. This acquisition underscores Merck's strategy to diversify its portfolio as its cancer drug Keytruda faces patent expiration in 2028.