Merck announced a $10 billion acquisition of Verona Pharma to enhance its respiratory disease portfolio, focusing on chronic obstructive pulmonary disease (COPD). The deal includes the recently FDA-approved Ohtuvayre drug, which is showing promising commercial performance with forecasts exceeding $4 billion in peak sales. Merck's move aligns with its strategy to offset patent losses from its blockbuster cancer drug Keytruda. This acquisition marks Merck's largest since prior $11 billion purchases of Prometheus Biosciences and Acceleron Pharma. The purchase price includes a 23% premium, underscoring the strategic value of Verona's respiratory assets.