Merck & Co. has agreed to acquire London-based Verona Pharma for $10 billion, securing the rights to Ohtuvayre, a lung drug recently approved by the FDA for chronic obstructive pulmonary disease (COPD). The inhaled therapy combines bronchodilator and anti-inflammatory effects, representing the first novel mechanism in over two decades for COPD treatment. Analysts project peak sales potentially exceeding $4 billion annually, outpacing the acquisition price. The drug has witnessed rapid uptake since its August 2024 launch. Additionally, Verona is studying the drug in other respiratory conditions such as asthma and cystic fibrosis. This deal strengthens Merck’s cardio-pulmonary portfolio amid patent cliffs for its oncology blockbusters and follows a series of significant acquisitions by the company in recent years.