Merck nears US$10 billion deal for London-based lung therapy firm Verona, FT reports
The deal values Verona at about US$107 per American depository share
[LONDON] Merck is nearing a US$10 billion deal to buy lung diseases focussed Verona Pharma, as the US drugmaker is eyeing deals to offset the upcoming patent expiry of its blockbuster cancer drug, the Financial Times reported on Wednesday (Jul 9).
The deal values London-based Verona at about US$107 per American depository share, the report said, citing three people familiar with the matter. The reported purchase price represents a premium of about 23 per cent to Verona ADS’ last close on the Nasdaq.
The deal would be Merck’s largest since its US$10.8 billion buyout of Prometheus Biosciences in 2023.
News of the upcoming deal sent Verona’s US-listed shares soaring about 18 per cent to US$102.8 in premarket trading.
Merck and London-based Verona did not immediately respond to Reuters requests for comment. Reuters could not immediately verify the report.
Merck has long leaned on its blockbuster cancer drug Keytruda, which generated nearly US$30 billion in sales in 2024, but faces looming patent expiries starting in 2028.
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In response, the company has ramped up deal-making to broaden its revenue base.
Verona, which is also listed in Frankfurt, rose into prominence with the approval of its inhalable, non-steroid treatment Ohtuvayre for patients with chronic obstructive pulmonary disease, a condition affecting nearly 16 million Americans. Its market capitalisation was about US$7.39 billion, according to LSEG data.
Over 96 per cent of Verona’s first quarter revenue of about US$76 million came from the Ohtuvayre therapy.
Last month, FT reported that Merck held talks to buy Swiss biotech MoonLake Immunotherapeutics for more than US$3 billion, while, in March, the US drugmaker also signed an up to US$2 billion licensing agreement for a heart disease drug with Jiangsu Hengrui Pharmaceuticals.
Merck’s acquisition would fast track the international launch of the drug in countries outside the US, the FT report added.
Shares of Merck, valued at over US$204 billion as of Tuesday, are down by more than 18 per cent this year. REUTERS
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