Merck & Co. is nearing a deal to acquire Verona Pharma—valued at approximately $10 billion—for its innovative respiratory therapy, Ohtuvayre. This planned acquisition marks Merck’s largest purchase since its 2023 Prometheus Biosciences deal, aligning with a long-term strategy to bolster specialty drug revenue ahead of looming patent expirations for its cancer treatment Keytruda.
Ohtuvayre, cleared by the FDA for chronic obstructive pulmonary disease (COPD), achieved notable early success. It recorded over 25,000 U.S. prescriptions in its first quarter, with analysts projecting peak annual sales near $4 billion by the mid-2030s. Verona also boasts an expanding pipeline targeting respiratory ailments such as asthma and bronchiectasis—adding depth to Merck’s pipeline and offering future growth prospects.
Merck’s acquisition plan matches its broader goal: offsetting impending declines in oncology revenue by strengthening its specialty portfolio. With patent expiry on Keytruda set for 2028, diversifying into respiratory therapies is a calculated pivot. Following a blueprint established with Winrevair in 2021, Ohtuvayre could become a cornerstone of Merck’s respiratory unit.
Negotiations are nearing final stages and the deal is expected to close in the coming week, pending regulatory approval. CEO Rob Davis previously emphasized Merck’s focus on strategic biotech acquisitions. Verona, founded two decades ago, with Ohtuvayre as its lead therapy, aligns closely with Merck’s therapy focus and experience. The shared goal: leverage Merck’s global infrastructure to accelerate therapy access and expansion.
Investor sentiment reflects both optimism and caution. While shares jumped on acquisition news, overall stock performance remains down nearly 35% year‑over‑year amid key revenue pressures. Market analysts are watching regulatory processes and integration risks closely—the successful merger could build long‑term value if executed effectively and allowed through review.
Merck’s intent to acquire Verona underscores its commitment to long-term strategic diversification. By securing Ohtuvayre and investing in Verona’s pipeline, Merck is taking proactive steps to offset future losses in oncology while leveraging respiratory growth potential. The deal's success hinges on efficient rollout, global market penetration, and smooth integration. If all goes well, the acquisition may become a key pillar in Merck's specialty drug reinvigoration strategy.