Merck’s $10B Verona Deal: A High-Stakes Play in Respiratory Care

Verona Pharma plc (NASDAQ:VRNA) is one of the best multibagger stocks according to hedge funds. On July 9, 2025, Merck & Co. unveiled a $10 billion agreement to acquire Verona Pharma at $107 per American Depositary Share, representing a 23% premium over the closing price, in a bold move to bolster its respiratory portfolio ahead of Keytruda’s impending patent expiration in 2028.

This acquisition centers on Ohtuvayre® (ensifentrine), Verona’s first-in-class inhaled COPD maintenance therapy, launched in August 2024 and already showing rapid adoption, including over $40 million in sales during 2024 and roughly $71 million in Q1 2025. The transaction is expected to close in Q4 2025 pending regulatory and shareholder approvals, and marks Merck’s largest acquisition since its Prometheus and Acceleron deals.

Merck’s $10B Verona Deal: A High-Stakes Play in Respiratory Care

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Taken by itself, this deal spotlights why hedge funds see multibagger potential: Merck’s agreement validates Ohtuvayre’s market opportunity and gives shareholders immediate upside via a solid takeover premium. It also signals confidence in Verona’s pipeline and commercial execution.

Verona Pharma plc (Nasdaq: VRNA) is a UK-based biotech focused on treatments for respiratory diseases. Its lead product, Ohtuvayre, is FDA-approved for COPD and commercially available in the U.S., and is also being evaluated in clinical trials for bronchiectasis.

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While we acknowledge the potential of VRNA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VRNA and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.