Merck & Co. has agreed to acquire UK-based Verona Pharma in a deal valued at approximately $10 billion. The acquisition will be executed at $107 per American Depositary Share (ADS), representing a 23% premium over Verona's previous trading price. This transaction marks Merck's largest deal since its 2023 acquisition of Prometheus and is intended to strengthen its respiratory and cardiopulmonary portfolio. Central to the acquisition is Verona's Ohtuvayre® (ensifentrine), a first-in-class maintenance treatment for chronic obstructive pulmonary disease (COPD) approved by the FDA last year. Merck aims to leverage this drug to offset anticipated revenue losses from the impending patent expiration of its top-selling cancer drug, Keytruda. Verona Pharma, founded as a UK university spinout, has become a notable player in respiratory therapeutics, and this acquisition represents one of the largest in the UK biotech sector. Following the announcement, Verona's shares surged by approximately 20% in premarket trading. Analysts view the deal as a strategic move by Merck to diversify its portfolio and maintain growth in the cardiopulmonary treatment area through the next decade.