Pharmaceutical behemoth Merck is said to be in the process of sealing a $10 billion acquisition of Verona Pharma, a biotech firm specializing in lung disease drugs. The Financial Times revealed the news on Wednesday, based on sources close to the situation.
Merck would pay about $107 for each American depository share of Verona, according to the report. Merck and Verona have not publicly confirmed the merger, and Reuters was not able to confirm the report independently.
Merck has been banking on its blockbuster cancer drug Keytruda, which generated close to $30 billion in revenue in 2024. The patents on Keytruda, however, are set to expire beginning in 2028. To be ready for the future, the firm has been aggressively pursuing new deals to diversify its drug pipeline.
Verona’s Emphasis on Lung Therapies Makes It Desirable
Earlier this year, Merck made a licensing deal of as much as $2 billion for an anticholesterol medication with China’s Jiangsu Hengrui Pharmaceuticals. It has also been in negotiations to buy MoonLake Immunotherapeutics, a Swiss biotech company, for more than $3 billion, according to past reports.
Verona Pharma focuses on chronic lung disease medicines, particularly chronic obstructive pulmonary disease (COPD). Its initial approved product, Ohtuvayre, is currently used to treat COPD patients.
Verona posted $76.3 million in revenue for the first quarter of 2025. Verona’s market value was approximately $7.4 billion as of Tuesday, with closing shares at $86.90.
Deal Could Help Offset Stock Pressure on Merck
Merck’s market value was more than $204 billion as of Tuesday, although its shares have declined over 18% this year. Acquiring Verona could assist the firm in balancing dwindling growth and setting itself up for a more diversified future in the drug industry.
The deal, if finalized, would bring a rising lung treatment portfolio to Merck’s operations and make it stronger in other areas besides cancer therapy.
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