U.S. pharmaceutical giant Merck announced Wednesday it will acquire U.K.-based Verona Pharma in a deal valued at approximately $10 billion, as the company seeks to bolster its respiratory treatment offerings and reduce dependence on its blockbuster cancer drug Keytruda.
Under the terms of the agreement, Merck will pay $107 per American Depositary Share for Verona, representing a roughly 23% premium over the British firm’s latest closing price on the Nasdaq. The acquisition comes as Merck braces for Keytruda’s patent expirations beginning in 2028.
The transaction underscores Merck’s broader strategy to diversify revenue and strengthen its pipeline in the face of mounting competition and evolving market dynamics.