Merck to buy UK's Verona Pharma for $10 billion in bid to diversify beyond cancer treatment
The acquisition will strengthen Merck's respiratory treatments as part of efforts to reduce dependence on its blockbuster cancer treatment.
Keytruda, the world's top-selling drug with nearly $30 billion in revenue last year, is nearing key patent expirations from 2028, and Merck has doubled down on efforts to reshape its portfolio.
The deal gives the US drugmaker control of Ohtuvayre, a newly approved treatment for chronic obstructive pulmonary disease, commonly called "smoker's lung". In 2024, the drug has generated sales of $42.3 million.
'Ohtuvayre complements and expands our pipeline and portfolio of treatments for cardiopulmonary diseases while delivering near- and long-term growth as well as value for shareholders," Merck & Co. Inc. Chairman and CEO Robert Davis said in a statement.
US regulators approved the inhaled medication more than a year ago to treat chronic obstructive pulmonary disease, or COPD, in adults.
Verona CEO David Zaccardelli said that Merck's commercial reach can help Ohtuvayre reach more COPD patients.
According to the National Institutes of Health, COPD is a progressive disease that can cause shortness of breath, coughing and other problems that make it hard to breathe.
It is caused by damage to the airways or other parts of the lung and affects more than 14 million adults in the United States.
The acquisition is Rahway, New Jersey-based Merck's first of the year and its largest since its $10.8 billion buyout of Prometheus Biosciences in 2023.
The deal has been approved by the boards of both the pharma companies and is expected to close in the fourth quarter. But it still needs Verona Pharma shareholder approval and sanction by the High Court of Justice of England and Wales.
As per the deal, Merck will pay $107 per American depository share for Verona, a premium of 23% to the UK company's last close on the Nasdaq.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
2 hours ago
- Economic Times
Apple has a new Indian-American COO. What it needs might be a new CEO.
Is peak Apple over? To ask this question of a company which just recently, in December 2024, recorded its highest market cap ever of USD3.73 trillion — with a T — may seem foolhardy. But there is a general sense of unease and disquiet among many Apple watchers. Just last week, all of this uncertainty about the future made two analysts — Walter Piecyk and Joe Galone of LightShed Partners, a New York-based research firm — articulate what many have
Time of India
2 hours ago
- Time of India
Apple has a new Indian-American COO. What it needs might be a new CEO.
Is peak Apple over? To ask this question of a company which just recently, in December 2024, recorded its highest market cap ever of USD3.73 trillion — with a T — may seem foolhardy. But there is a general sense of unease and disquiet among many Apple watchers. Just last week, all of this uncertainty about the future made two analysts — Walter Piecyk and Joe Galone of LightShed Partners, a New York-based research firm — articulate what many have
The Hindu
2 hours ago
- The Hindu
‘Innovations, creativity among youth key factors to promote climate action'
Innovations, creativity and digital fluency among the youth were the key factors to promote environmental and climate action, which could ensure sustainability and pave the way for 'green growth', experts said at conference on 'youth sustainability' here on Monday (July 21, 2025). The event formed part of a campaign for involving youth in the action to control climate change. The experts described the youth as not just the leaders of tomorrow, but as the 'solution providers of today', while calling upon them to adopt a shared vision of green economy. An environmentally sustainable economy could be evolved with proper resource management, collaborations and upskilling. Water conservationist and Magsaysay Award winner Rajendra Singh said the challenges of climate urgency had produced opportunities to learn the use of indigenous knowledge systems. 'Communities equipped with local wisdom can conserve water and revive the dry and dead rivers,' Mr. Singh said. Highlighting the role of Tarun Bharat Sangh, established by him, in the revival of Arvari river in Alwar district with the construction of small check dams, Mr. Singh said the adoption of prudent agricultural practices would make the ecosystem healthy and mitigate the impact of climate change. Haridev Joshi University of Journalism Vice-Chancellor Sudhi Rajiv said the individual and collective action of the youth could help improve environmental outcomes, even as the educational institutions could function as 'living laboratories' for sustainability. Rajasthan Chamber of Commerce and Industry president K.L. Jain said the industries must not merely be engines of growth, but they should become champions of green innovation. 'The sectors such as renewable energy, electric vehicles, sustainable agriculture and circular economy will be at the forefront of India's transition into a green economy in the next ten years,' he said. Experts addressing the sessions on youth-industry synergy, digital narratives, and harnessing communication said the energy of youth and the experience and resources of industry should be brought together to create a green, inclusive and resilient economy. To bridge the gap between the academia and the industry on climate action, the steps suggested by the speakers included co-creation of curriculum, encouraging apprenticeships and on-field exposure, supporting research and development collaborations, developing centres of excellence and incentivising startups and innovation labs. The campaign for climate action has been taken up under the aegis of Jaipur-based Lok Samvad Sansthan (LSS) and New Delhi-based Sustainability Karma. LSS secretary Kalyan Singh Kothari said the youth were being encouraged to produce contents to sensitise the people on the challenges of environmental degradation and promote sustainable living.
