Key Highlights
- Merck acquires Verona Pharma for $10B to bolster its respiratory portfolio and counter Keytruda’s 2028 patent expiry
- Ohtuvayre, Verona’s FDA-approved COPD drug, expected to generate $3.4B in peak sales and immediately boost Merck’s revenue
- The deal is the second-largest pharma acquisition of 2025, signaling Merck’s aggressive shift toward sustainable post-Keytruda growth
Merck Secures Verona to Bridge Its Post-Keytruda Future
Merck & Co. has taken a bold step to secure its long-term revenue pipeline by acquiring Verona Pharma in a $10 billion all-cash deal. This acquisition, the second-largest in biopharma this year, gives Merck immediate access to Ohtuvayre, an FDA-approved chronic obstructive pulmonary disease (COPD) drug with blockbuster potential. With Keytruda—Merck’s top-selling oncology drug—set to lose patent protection in 2028, this strategic move shows Merck’s intention to pivot toward high-value therapeutic areas and reduce its dependence on oncology.
Ohtuvayre Set to Drive Merck’s Respiratory Expansion
Cleared by the FDA in mid-2024, Ohtuvayre has already made commercial strides, recording $71.3 million in sales and over 25,000 prescriptions in Q1 2025 alone. With analyst projections reaching $3.4 billion in peak sales, the drug provides a significant top-line opportunity. Merck plans to integrate Ohtuvayre into its growing respiratory franchise, which includes recent approvals like Enflonsia for RSV. The acquisition reflects Merck’s broader plan to build a diversified portfolio in chronic disease management, leveraging its scale and commercial reach.
Deal Structure Highlights Confidence in Verona’s Commercial Trajectory
Under the deal, Merck will pay $107 per American Depositary Share of Verona, representing an 8:1 ratio of its ordinary shares. Both boards have unanimously approved the transaction, with expected closure in Q4 2025, pending regulatory and antitrust clearances. This premium price underscores Merck’s strong confidence in the commercial and clinical value of Ohtuvayre, which analysts say could add immediate revenue and become a long-term growth pillar for the company.
Merck’s M&A Streak Signals an Aggressive Growth Strategy
This acquisition continues Merck’s pattern of high-value strategic buys aimed at diversifying its portfolio beyond oncology. Previous purchases include Prometheus Biosciences ($10.8B, inflammatory diseases), Acceleron Pharma ($11B, rare diseases), and EyeBio ($3B, ophthalmology). With growing pressure to fill revenue gaps post-Keytruda, Merck is not just acquiring pipelines—it’s acquiring validated, commercial-stage assets that can deliver rapid returns. The Verona deal affirms Merck’s position as a serious contender in respiratory care and demonstrates its commitment to reshaping its long-term future through precision M&A.
About Verona Pharma
Verona Pharma is a biopharmaceutical company dedicated to the development and commercialization of innovative therapies for respiratory diseases with significant unmet need. The company’s lead product, Ohtuvayre (ensifentrine), is a first-in-class, dual inhibitor of the enzymes PDE3 and PDE4, offering both bronchodilator and anti-inflammatory benefits in a single compound. Approved by the U.S. FDA in 2024 for the maintenance treatment of chronic obstructive pulmonary disease (COPD), Ohtuvayre has rapidly gained traction in the market. Verona is headquartered in London and maintains key operations in the U.S., positioning itself at the forefront of respiratory therapeutics innovation.
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