Merck's Verona Acquisition: Plugging A $4B Hole In A $20B Gap
1. Merck acquires Verona Pharma for $10 billion to diversify post-Keytruda assets. 2. Ohtuvayre, Verona's drug, projected to generate $4 billion in peak sales. 3. Acquisition insufficient to fully offset potential $15-20 billion Keytruda revenue decline. 4. Merck's strong pipeline includes 20 drugs with a $50 billion potential. 5. Stock down 16% YTD, indicating ongoing investor concerns over growth trajectory.