Merck buys Verona to offset Keytruda patent loss

Merck & Co. will acquire Verona Pharma for $10 billion, securing Verona's COPD treatment, Ohtuvayre, as Merck faces Keytruda's patent expiration. The acquisition aims to offset revenue losses from Keytruda, Merck's top-selling cancer drug, whose key patent expires in 2028. Ohtuvayre, a recently approved COPD treatment, is expected to capture growth in the $10 billion COPD market by 2032. Analysts suggest this move is a positive step, but further acquisitions are needed to compensate for Keytruda's patent cliff and potential Gardasil sales decline. The deal's valuation suggests limited EU commercialization prospects.