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Merck will purchase UK-based Verona Pharma for about $10 billion, the businesses mentioned on Wednesday, strengthening the U.S. agency’s respiratory remedy portfolio in a bid to diversify its income supply past blockbuster most cancers drug.
Merck has been leaning on its getting older most cancers immunotherapy Keytruda, the world’s top-selling prescription medication, which generated practically $30 billion in gross sales in 2024, however faces patent expiries beginning in 2028.
In response, the corporate has ramped up deal-making to broaden its income base. The most recent deal is Merck’s largest since its $10.8 billion buyout of Prometheus Biosciences in 2023.
It builds on the corporate’s portfolio of continual lung illness remedies, together with not too long ago authorised Winrevair and Enflonsia.
Merck can pay $107 per American depository share for London-based Verona, a premium of 23% to Verona’s final closing value on the Nasdaq. Verona’s U.S.-listed shares jumped 20% in premarket buying and selling.
Verona, which can also be listed in Frankfurt, rose into prominence with the approval of its inhalable, non-steroid remedy Ohtuvayre for sufferers with continual obstructive pulmonary illness, often known as “smoker’s lung”, a standard lung illness affecting practically 16 million Individuals.
Ohtuvayre was authorised final 12 months and introduced in annual gross sales of $42.3 million. Jefferies analysts anticipate the drug to have peak annual gross sales of greater than $3 billion.
The Monetary Occasions first reported that Merck was nearing a deal to amass Verona. Final month, FT reported that Merck held talks to purchase Swiss biotech MoonLake Immunotherapeutics for greater than $3 billion.