Diversifying Beyond Oncology
The Verona acquisition is the latest in a spree of high-stakes deals aimed at future-proofing Merck’s pipeline:
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Prometheus Biosciences for $10.8B, adding an autoimmune drug candidate (2023)
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Acceleron Pharma for $11.5B, bringing a rare disease and anemia treatment (2021)
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A $22B collaboration with Daiichi Sankyo to co-develop cancer ADCs (2023)
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A $2B investment in a Chinese cardiovascular therapy (recent)
Each of these bets is part of a calculated chess game to soften the financial blow of Keytruda’s eventual loss of exclusivity, which has been Merck’s single largest revenue stream.
The Deal Mechanics and Legal Backing
The $10B Verona transaction, expected to close by year-end, is contingent on both regulatory approval and shareholder sign-off.
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Merck is advised by Freshfields LLP, with Gibson Dunn handling antitrust matters
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Verona Pharma is represented by Latham & Watkins LLP
Looking Back: Merck’s Mega-Deals in Perspective
Merck’s biggest deal remains the $41.1B reverse merger with Schering-Plough in 2009 — a deal that rewrote pharma M&A playbooks. Since then, its top five deals have included Prometheus, Acceleron, and now Verona, reflecting a shift toward precision medicine and innovative biotech.
Each deal, including Verona, has been more than a numbers game. They represent strategic repositioning in areas of unmet clinical need, from cancer to cardiovascular to now chronic respiratory illness.
“We are building an innovation engine that is sustainable, diversified, and science-driven,” Davis added.
