Merck shells out $10 billion for London-based lung therapy firm Verona

Merck volition bargain UK-based Verona Pharma for astir $10 billion, the companies said connected Wednesday, strengthening the U.S. firm's respiratory attraction portfolio successful a bid to diversify its gross root beyond blockbuster crab drug.

Merck has been leaning connected its aging crab immunotherapy Keytruda, the world's top-selling medicine medicine, which generated astir $30 cardinal successful income successful 2024, but faces patent expiries starting successful 2028.

In response, the institution has ramped up deal-making to broaden its gross base. The latest woody is Merck's largest since its $10.8 cardinal buyout of Prometheus Biosciences successful 2023.

It builds connected the company's portfolio of chronic lung illness treatments, including precocious approved Winrevair and Enflonsia.

Merck volition wage $107 per American depository stock for London-based Verona, a premium of 23% to Verona's past closing terms connected the Nasdaq. Verona's U.S.-listed shares jumped 20% successful premarket trading.

Verona, which is besides listed successful Frankfurt, roseate into prominence with the support of its inhalable, non-steroid attraction Ohtuvayre for patients with chronic obstructive pulmonary disease, besides known arsenic "smoker's lung", a communal lung illness affecting astir 16 cardinal Americans.

Ohtuvayre was approved past twelvemonth and brought successful yearly income of $42.3 million. Jefferies analysts expect the cause to person highest yearly income of much than $3 billion.

The Financial Times archetypal reported that Merck was nearing a woody to get Verona. Last month, FT reported that Merck held talks to bargain Swiss biotech MoonLake Immunotherapeutics for much than $3 billion.