Merck & Co. has announced a groundbreaking acquisition of U.K.-based Verona Pharma in a transaction valued at approximately $10 billion, marking one of its largest purchases in years.
Under the terms, Merck will acquire Verona at $107 per American Depositary Share (ADS)—a 23% premium over Verona’s previous closing price. The deal, unanimously approved by both companies’ boards, is expected to close in the fourth quarter of 2025, pending regulatory and shareholder approvals.
Central to the acquisition is Ohtuvayre (ensifentrine), an FDA-approved inhaled therapy for chronic obstructive pulmonary disease (COPD) launched in August 2024. The drug—which combines bronchodilator and anti-inflammatory mechanisms—represents the first new inhaled COPD maintenance treatment in over two decades. It generated around $42 million in sales in 2024 and soared to approximately $71 million in Q1 2025, with over 25,000 prescriptions filled. Analysts project Ohtuvayre could reach $3‑4 billion in peak annual sales by the mid-2030s.
For Merck, the acquisition is a strategic response to the upcoming expiration of its blockbuster cancer immunotherapy, Keytruda, by 2028. Keytruda accounted for around $30 billion in annual revenue in 2024, nearly half of Merck’s total. Expanding into cardiopulmonary care with Ohtuvayre helps diversify its portfolio and support future growth.
CEO Robert M. Davis emphasized that the deal is aligned with Merck’s science-led, value-driven business development strategy. Verona CEO David Zaccardelli welcomed the acquisition, noting that Merck’s global capabilities will accelerate Ohtuvayre’s access to more patients.
Market reaction was swift—Verona’s shares jumped 20‑21%, while Merck stock rose about 2‑3%, although it remains under pressure year-to-date.
This acquisition follows a string of major deals for Merck: from the $11.5 billion acquisition of Acceleron Pharma in 2021, bringing the pulmonary arterial hypertension drug Winrevair into its portfolio, to the $10.8 billion purchase of Prometheus Biosciences in 2023.
Merck’s continued M&A activity underscores its focus on building a sustainable growth pipeline beyond oncology.
