Merck to buy UK's Verona Pharma for $10 billion in bid to diversify beyond cancer treatment
The acquisition will strengthen Merck's respiratory treatments as part of efforts to reduce dependence on its blockbuster cancer treatment.
Keytruda, the world's top-selling drug with nearly $30 billion in revenue last year, is nearing key patent expirations from 2028, and Merck has doubled down on efforts to reshape its portfolio.
The deal gives the US drugmaker control of Ohtuvayre, a newly approved treatment for chronic obstructive pulmonary disease, commonly called "smoker's lung". In 2024, the drug has generated sales of $42.3 million.
'Ohtuvayre complements and expands our pipeline and portfolio of treatments for cardiopulmonary diseases while delivering near- and long-term growth as well as value for shareholders," Merck & Co. Inc. Chairman and CEO Robert Davis said in a statement.
US regulators approved the inhaled medication more than a year ago to treat chronic obstructive pulmonary disease, or COPD, in adults.
Verona CEO David Zaccardelli said that Merck's commercial reach can help Ohtuvayre reach more COPD patients.
According to the National Institutes of Health, COPD is a progressive disease that can cause shortness of breath, coughing and other problems that make it hard to breathe.
It is caused by damage to the airways or other parts of the lung and affects more than 14 million adults in the United States.
The acquisition is Rahway, New Jersey-based Merck's first of the year and its largest since its $10.8 billion buyout of Prometheus Biosciences in 2023.
The deal has been approved by the boards of both the pharma companies and is expected to close in the fourth quarter. But it still needs Verona Pharma shareholder approval and sanction by the High Court of Justice of England and Wales.
As per the deal, Merck will pay $107 per American depository share for Verona, a premium of 23% to the UK company's last close on the Nasdaq.
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