Pharma Giant Merck Buys Lung Therapy Firm Verona For $10 Billion

Pharmaceutical giant Merck & Co. (MRK) is buying British lung therapy firm Verona Pharma (VRNA) for $10 billion U.S. In a written statement, Merck said the deal will strengthen its respiratory treatment portfolio and diversify its revenue sources beyond its current slate of blockbuster cancer drugs.Merck has leaned heavily on its aging cancer immunotherapy Keytruda, the world’s top-selling prescription medicine, which generated nearly $30 billion U.S. of sales in 2024.However, Keytruda’s patent expiries in 2028, opening up the drug to competition from generic versions of the medication. In response, Merck has increased its deal-making to broaden its drug portfolio and revenue. The latest deal to acquire Verona Pharma is Merck’s biggest since its $10.8 billion U.S. purchase of Prometheus Biosciences in 2023.Merck is building a portfolio of chronic lung disease treatments, including recently approved medications Winrevair and Enflonsia.Under terms of the deal, Merck will pay $107 U.S. per share for London-based Verona, a 23% premium to the stock’s last closing price on the Nasdaq exchange. Verona rose to prominence with the approval of its treatment Ohtuvayre for patients with chronic obstructive pulmonary disease (COPD), a lung ailment affecting nearly 16 million Americans.MRK stock has declined 18% this year to trade at $81.37 U.S. per share.