Merck’s $10 Billion Megadeal Ignites Wall Street Frenzy: Why MRK and VRNA Are the Stocks to Watch
Big Pharma just made a major move — and investors are piling in
Merck & Co. (ticker MRK, trading on the NYSE, in the pharmaceutical/drug sector) is seizing the spotlight today after unveiling plans to acquire Verona Pharma (ticker VRNA, trading on Nasdaq, in the biotech/respiratory drug sector) in a deal valued at around $10 billion. This takeover has shot both stocks to center stage in the S&P 500, with Verona’s ADR soaring by nearly 20% and Merck gaining solid upward momentum as investors react to the strategic move.
The transaction will see Merck pay $107 per American Depositary Share for VRNA, representing eight ordinary shares, effectively delivering a 23 percent premium over Verona’s most recent closing price. Verona’s stock leaped nearly 21 percent intraday, nearing the $107 offer mark, while MRK posted a more subdued—but meaningful—increase.
What’s driving the buzz is Ohtuvayre (also known as ensifentrine), Verona’s new inhaled drug for the maintenance of chronic obstructive pulmonary disease (COPD). Approved in June 2024 by the FDA, Ohtuvayre combines bronchodilator and anti‑inflammatory effects in a single mechanism—something unseen in COPD treatments for over two decades. In Q1 2025, it achieved $71.3 million in U.S. sales, a sequential 95% growth, smashing expectations and putting it on track for an estimated $91.8 million in Q2.
Analysts now project that Ohtuvayre could hit peak U.S. sales of $3 to $4 billion, with some cautious estimates around $2.6 billion by 2030, though more bullish forecasts see stronger numbers. Merck’s CEO Robert M. Davis emphasized how the drug “complements and expands” Merck’s cardiopulmonary pipeline, offering near‑term revenues and long‑term growth amid the looming loss of patent exclusivity on its blockbuster Keytruda cancer therapy by 2028.
Verona’s CEO, David Zaccardelli, said Merck’s deep commercial reach can accelerate Ohtuvayre access to millions more COPD patients across the U.S. and globally, cementing significant shareholder value. Verona already logged some 25,000 prescriptions filled in Q1, and Merck believes those numbers can scale rapidly under its global infrastructure.
The deal, expected to close in Q4 2025 pending regulatory and shareholder approvals in the U.K. and under the U.S. Hart‑Scott‑Rodino process, follows Merck’s acquisitions of Acceleron Pharma (2021) and Prometheus Biosciences (2023), reinforcing a pattern of billion‑dollar deals to diversify Merck’s drug pipeline beyond oncology.
Investors are watching as this acquisition places Merck among leaders in the respiratory sector within the S&P 500, while Verona becomes a prime takeover success story. MRK and VRNA now headline equity conversations on Wall Street and social media alike, thanks to Ohtuvayre’s blockbuster potential and the strategic leap Merck is making into cardio‑pulmonary innovation.