Facing a looming patent cliff on its blockbuster cancer drug Keytruda, Merck & Co Inc (NYSE:MRK, ETR:6MK) is putting the finishing touches to a $10 billion deal to acquire Verona Pharma, a specialist in lung disease therapies, the Financial Times reported.
The planned purchase price of $107 per American Depositary Share represents a 35% premium to Verona’s most recent Nasdaq close.
Verona’s inhalable treatment, Ohtuvayre, for chronic obstructive pulmonary disease, generated over 96% of the company’s $76 million revenue in the first quarter.
The acquisition would help Merck diversify its portfolio ahead of Keytruda’s patent expirations starting in 2028 and accelerate the international launch of Verona’s therapy.
This deal would be Merck’s largest since 2023, when it bought Prometheus Biosciences for $10.8 billion.