Merck is making big pharma waves again with a $10 billion deal to acquire Verona Pharma, reports Colin Kellaher for the Wall Street Journal.
The move bolsters Merck’s pipeline with the COPD drug Ohtuvayre as the company prepares to lose the patent of Keytruda in 2028.
With operations in both West Point and North Wales, Merck is one of Montco’s largest employers. CEO Rob Davis said the Verona deal is part of a broader plan to diversify the company’s growth drivers. Verona shareholders will receive $107 per American depository share. This is a 23% premium over the company’s recent stock price.
The FDA approved Ohtuvayre last year for use as a maintenance therapy for adults with COPD. The drug is currently in testing for use in non-cystic fibrosis bronchiectasis. Merck sees the drug as a potential multibillion-dollar franchise.
This is Merck’s biggest acquisition since it bought Prometheus Biosciences in 2023 and signals the company’s ongoing appetite for strategic deals. Funding will come from a mix of cash, commercial paper, and new debt.
Merck expects to close the Verona deal by the end of the year.
Read more about the pharma giant’s acquisition of Verona Pharma in the Wall Street Journal.
