“`html
Merck (MRK) announced a definitive agreement to acquire Verona Pharma (VRNA) for approximately $10 billion earlier this week. This acquisition will enhance Merck’s cardio-pulmonary portfolio by adding Ohtuvayre, a drug approved for the maintenance treatment of chronic obstructive pulmonary disease (COPD). The FDA approved Ohtuvayre in June 2022, with regulatory filings in the EU anticipated soon.
Ohtuvayre’s unique mechanism combines bronchodilation and anti-inflammatory effects, setting it apart from existing treatments. During its first quarter post-launch, Ohtuvayre generated sales of $71.3 million, a 95% increase sequentially. The acquisition aligns with Merck’s strategy to diversify away from its oncology focus, particularly in light of the impending patent expiration of Keytruda in 2028.
Merck’s sales, particularly from Keytruda, are critical, as the drug accounts for approximately 50% of its pharmaceutical revenue. However, challenges persist, including declining Gardasil sales in China and increasing competition for Keytruda.
“`
