Merck to Acquire Verona Pharma for $10 Billion in Bid to Cushion "Patent Cliff" Impact

Source Tradingkey

TradingKey - U.S. pharmaceutical giant Merck (MRK.US) has announced a roughly $10 billion deal to acquire U.K.-based biopharma firm Verona Pharma (VRNA.US), marking a major move into the respiratory disease treatment space.

Under the agreement, Merck will pay $107 per American Depositary Receipt (ADR) for Verona Pharma — a 23% premium over its previous closing price. Following the news, Verona’s shares surged 21% in pre-market trading to $104.70, Merck's stock price rose 3% at the close of trading.

Verona Pharma Stock

This acquisition ranks as Merck’s third-largest in nearly three decades and comes as the company prepares for the looming patent expiration of its blockbuster cancer drug, Keytruda. With annual sales nearing $30 billion — accounting for nearly half of Merck’s total revenue — the drug’s impending “patent cliff” in 2028 has created urgent need for new revenue sources.

The deal is expected to close by the fourth quarter of 2025. Investors are now watching closely to see whether Merck can effectively plug future revenue gaps through strategic acquisitions and establish a strong foothold in the highly competitive respiratory disease market.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Samsung Electronics Forecasts Stronger-Than-Expected Q3 Profit on AI Demand Samsung forecasts Q3 profit of 12.1 trillion won, boosted by strong AI chip demand.
Author  Mitrade
Oct 14, Tue
Samsung forecasts Q3 profit of 12.1 trillion won, boosted by strong AI chip demand.
placeholder
Dollar Gains as US-China Trade Tensions Ease The U.S. dollar remained steady on Tuesday following a shift in President Donald Trump’s harsh stance on tariffs against China.
Author  Mitrade
Oct 14, Tue
The U.S. dollar remained steady on Tuesday following a shift in President Donald Trump’s harsh stance on tariffs against China.
placeholder
Asian Stocks Mixed as Commodities Pause and Yen Draws AttentionAsian equity markets struggled to close the week on a weak note Friday, influenced by ongoing losses on Wall Street that extended into early Asian trading.
Author  Mitrade
Oct 10, Fri
Asian equity markets struggled to close the week on a weak note Friday, influenced by ongoing losses on Wall Street that extended into early Asian trading.
placeholder
Oil Prices Hold Steady Amid Gaza Ceasefire and US Sanctions Oil prices held steady in early Asian trading on Friday following the announcement of a ceasefire between Israel and Hamas.
Author  Mitrade
Oct 10, Fri
Oil prices held steady in early Asian trading on Friday following the announcement of a ceasefire between Israel and Hamas.
placeholder
Bitcoin drops below $110K ahead of $22B options expiry; altcoins tumbleBitcoin fell below the $110,000 mark on Friday, heading for a steep weekly loss as nearly $22 billion in cryptocurrency options were set to expire. The drop also comes as traders await key U.S. inflation data that could influence the Federal Reserve’s policy outlook.
Author  Mitrade
Sept 26, Fri
Bitcoin fell below the $110,000 mark on Friday, heading for a steep weekly loss as nearly $22 billion in cryptocurrency options were set to expire. The drop also comes as traders await key U.S. inflation data that could influence the Federal Reserve’s policy outlook.
goTop
quote