Merck to Acquire Verona Pharma in $10 Billion Deal to Strengthen Respiratory Portfolio

Merck (known as MSD outside of the US and Canada) has announced plans to acquire London-based Verona Pharma for approximately $10 billion, aiming to bolster its respiratory treatment offerings. The acquisition centers around Verona's flagship drug, Ohtuvayre, an inhaled, non-steroidal therapy for chronic obstructive pulmonary disease (COPD), approved by the U.S. FDA in June 2024. Since its U.S. launch in August 2024, Ohtuvayre has generated significant sales, contributing over 96% of Verona's Q1 2025 revenue of $76 million. 

Merck will pay $107 per American Depository Share, representing a 23% premium over Verona's recent NASDAQ closing price. This move aligns with Merck's strategy to diversify its portfolio ahead of the anticipated 2028 patent expiration of its cancer drug, Keytruda. The acquisition is expected to accelerate the global rollout of Ohtuvayre and expand Merck's presence in the respiratory disease market. 

The deal, approved by both companies' boards, is anticipated to close in the fourth quarter of 2025, pending shareholder and regulatory approvals.