Pharmaceutical titan Merck & Co. Inc. has announced a landmark $10 billion acquisition of Verona Pharma plc, underscoring its strategy to expand beyond oncology and secure a new growth engine with Verona’s newly approved COPD treatment, Ohtuvayre.
The transaction, one of the largest in Merck’s storied history, was unveiled Wednesday, and positions the company to dominate a long-underserved corner of respiratory care, just as its multibillion-dollar cancer drug Keytruda approaches patent expiration in 2028.
A Pulmonary Power Play
Ohtuvayre — Verona’s crown jewel — is a first-in-class inhaled therapy for chronic obstructive pulmonary disease (COPD) and the first novel mechanism for the condition in over two decades. Approved by the FDA in June 2024, the drug combines bronchodilation with anti-inflammatory effects, targeting persistently symptomatic patients where existing treatments have failed.
Merck is wagering that Ohtuvayre could anchor its respiratory portfolio for the next generation, and signals its most aggressive bet yet on therapeutic diversification.
“This novel treatment addresses a critical unmet need in COPD,” Merck CEO Robert Davis said in a statement. “It’s a strategic fit for our pipeline and future growth.”
The therapy is also in trials for bronchiectasis, a separate but related lung condition — a potential avenue for market expansion.
