Merck has struck almost $10bn deal to purchase lung disease focused biotech Verona Pharam the US drugmaker mega acquisition in two years as it expands in respiratory medicine.
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The acquisition of Verona increase the New Jersey based pharmaceutical company pipeline with addition of Ohtuvayre a medicien approved in US to treat Chronic obstructive pulmonary disease COPD which analyst analyse could generate annual sales of almost $4bn by mide 2030.
The medicine is in trials as treatment for lung conditions.
The acquisition Mercks highest since its $10.8bn takeover of Prometheus Biosciences in 2023 is example fo pharmaceutical group targeting a biotech with approved product generating revenue to fill gap left by blockbuster drugs coming off patent.
US pharma giant looks to expand footbrint beyond cancer treatment its mega products neard patent cliff.
Merck added on Wednseday that it would pay $107 a share to purchase verona in a deal values target at about $10bn confirming report in Financial Times.
Shares in Verona spiked by 20 per cent in pre market trading as deal value the biotech at premium to Tuesday closing price.
Merck problem have compounded by sales slowdown in Chian for its top selling human papillomaviruse vaccine Gardasil.
Trump tariff policy prompted Merck in May to decrease its 2025 sales outlook.
Davis said he was hunting for deals of $1bn -$15bn in value or even higher if right target rises.
Merck struck up to $2.2 bn licensing deal with China based Jiangsu Hengrui Pharmaceuticals for global rights to heart disease drug.
Merck cancer treatment Keytruda the world mega selling drug almost $30bn a Merck cancer treatment Keytruda the world top selling drug with almost $30bn a year in revenue is coming off patent and being hit by US government price setting rules as soon as 2028.
Shares in Merck famous as MSD outside North America are down 35 per cent over past year giving it market value of $203bn as market close on Tuesday.
The value that this first in class novel mechanism bring is addition to armanentarium of patients facing COPD
Verona Ohtuvayre which launched in US previous year after being approved by Food and Drug Administration for treatment of COPD in adult patients has got off to a winning start with 25000 prescription filled by end of first quarter exceeding analyst expectations.
Verona a London headquartered biotech founded in 2005 has studied same treatment in patients wih host of lung conditions including bronchiectasis asthma and cystic fibrosis in combination with COPD drug widening reach of drug in years to come.
Othuvayre was first new inhaled medicine approve maintenance treatment for 8.6mn US patients with COPD a leading cause of death destroys lung tissue and function in past two decades.
Its not a steroid based treatment and works by two different enzymes working to open up airways and reduce inflammation.
The acquisition of Veron give Merck as cancer drugmaker a stronger foothold in medicine afte US approval of Winrevair past year a treatment for potentially fatal disease affecting heart and lungs which acquired in its $11.5 bn buyout of Acceleron Pharma in 2021.
The life sciences sector has been destabilised this year by possibility of drug pricing reforms under Donald Trump administration the threat of Tariffs and changes to regulatory and public health agencies under leadership of top US health official Robert F Kennedy Jr a known vaccine sceptic.
Since Davis arrive in April 2021 Merck has ranked as most active pharmaceutical groups for acquistion and deals as measured by number of deals done and dollars spent.