Merck & Co. agreed on Wednesday to acquire London-based Verona Pharma for about $10 billion in cash, offering $107 for each American depositary share of the respiratory-drug maker. The price represents a roughly 23% premium to Verona’s latest closing price and values the company at 13 times analysts’ forecast 2026 sales, according to deal documents. By buying Verona, Merck will add Ohtuvayre (ensifentrine), the first new inhaled maintenance therapy for chronic obstructive pulmonary disease in more than two decades. Approved by the U.S. Food and Drug Administration in June 2024, the dual PDE3/4 inhibitor generated $71.3 million of revenue in the first quarter and is projected by some analysts to exceed $4 billion in annual peak sales. Merck said the medicine has “multi-billion-dollar potential” and fits its expanding cardio-pulmonary portfolio. The purchase is part of Chief Executive Officer Robert Davis’s push to secure new growth drivers ahead of the 2028 patent expiry of Keytruda, which brought in $29 billion last year. It follows Merck’s $10.8 billion acquisition of Prometheus Biosciences in 2023 and its $11.5 billion buyout of Acceleron Pharma in 2021, underscoring the company’s willingness to deploy capital in the $10-$15 billion range. Boards of both companies have unanimously approved the transaction, which will be executed via a scheme of arrangement under U.K. law. Closing is targeted for the fourth quarter of 2025, subject to Verona shareholder approval, U.S. antitrust clearance and authorization by the High Court of Justice of England and Wales. Verona’s shares jumped about 20% in pre-market trading after news of the agreement, marking one of the largest jumps for a U.K. biotech on record.