Merck Acquires Verona Pharma for $10B to Support Portfolio with COPD Drug Ohtuvayre Ahead of Keytruda Patent Expiration

Merck & Co. Inc. (NYSE:MRK) is one of the most undervalued NYSE stocks to buy now. On July 9, Merck announced its acquisition of UK-based Verona Pharma for ~$10 billion. This move aims to diversify Merck’s portfolio, particularly in light of its blockbuster cancer drug Keytruda facing patent expirations starting in 2028, which could lead to a loss of its ~$30 billion in annual sales.

This acquisition is Merck’s first of the year and its largest since the $10.8 billion buyout of Prometheus Biosciences in 2023. It provides Merck with Verona’s newly approved respiratory treatment called Ohtuvayre. Ohtuvayre is designed to treat chronic obstructive pulmonary disease/COPD, commonly known as smoker’s lung.

A close-up of a person’s hand holding a bottle of pharmaceuticals.

Merck projects that Ohtuvayre could generate peak multibillion-dollar annual revenue by the mid-2030s. Since 2021, Merck has ~tripled its late-stage pipeline, combining internal development with acquisitions such as the $11.5 billion purchase of Acceleron in 2021, which added the pulmonary arterial hypertension drug Winrevair to its portfolio.

Merck & Co. Inc. (NYSE:MRK) is a healthcare company that operates through two segments: Pharmaceutical and Animal Health.

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Disclosure: None. This article is originally published at Insider Monkey.