Merck & Co. has agreed to acquire UK-based Verona Pharma in a deal valued at approximately $10 billion. The acquisition price is set at $107 per American depositary share, representing a premium of about 23% over Verona's recent trading price. Verona Pharma specializes in respiratory medications and is known for its recently approved drug Ohtuvayre (ensifentrine), a first-in-class maintenance treatment for chronic obstructive pulmonary disease (COPD). This deal marks Merck's largest acquisition since 2023 and significantly expands its cardiopulmonary portfolio. The acquisition aims to bolster Merck's respiratory drug offerings and help offset anticipated revenue losses following the patent expiration of its top-selling cancer drug, Keytruda. Verona Pharma, founded as a university spinout in the UK, has grown into a prominent biotech company with a focus on lung therapies. The transaction is expected to add long-term value to Merck's respiratory business and is considered a strategic move to diversify its portfolio amid challenges related to patent cliffs. Verona's shares rose by over 20% in premarket trading following the announcement. Analysts highlight the potential multi-billion dollar market opportunity for Verona's COPD treatment, which is seen as a key growth driver for Merck in the coming decade.