Daily Briefing

Around the nation: Merck buys Verona Pharma in $10B deal


Last week, Merck announced plans to buy Verona Pharma, a biotech company specializing in lung disease treatments, for $10 billion, in today's bite-sized hospital and health industry news from Maryland, Minnesota, and New Jersey. 

  • Maryland: Last month, the U.S. Preventive Services Task Force (USPSTF) updated its screening recommendations for intimate partner violence (IPV) and elder abuse. According to a JAMA editorial, around one in four women and one in seven men will experience IPV during their lifetime, and one in 10 people over the age of 60 will experience some kind of elder abuse. In their updated recommendations, USPSTF recommended clinicians screen for IPV in women of reproductive age, including those who are pregnant and postpartum. Multicomponent interventions had a moderate net benefit for patients who screened positive for IPV. USPSTF expanded its elder abuse designations to include caregiver abuse and neglect. However, the task force noted that there are currently no validated screening tools or effective interventions for elder abuse. "The IPV and elder abuse dual epidemics deserve more attention," said Melissa Simon, who authored the JAMA editorial on IPV and elder abuse. "IPV and elder abuse are public health emergencies, with survivors also facing profound consequences." According to Simon, IPV survivors are estimated to have a lifetime economic burden of $103,767 per victim due to medical costs, lost productivity, and legal expenses. Adults who experience elder abuse also have a 300% higher mortality rate, and seniors lose $2.6 billion a year due to financial exploitation. (Taylor, Becker's Clinical Leadership, 6/25)
  • Minnesota: Best Buy has sold Current Health back to the company's cofounder, Chris McGhee. Best Buy initially acquired Current Health in 2021 for around $400 million as part of its efforts to expand into healthcare. The financial details of Current's sale back to McGhee were not disclosed. Following the sale, McGhee will return as Current's CEO, with other company leaders like former CTO Stewart Whiting also returning. In an announcement, McGhee said he is excited about Current's next phase. "Many more patients across the U.S. now have access to healthcare outside the hospital," McGhee said. "But ultimately we are still in the early innings of the shift from hospital-based care to home- and community-based care. There's much more to do and Current Health has much more to give." Following the sale of Current Health, Best Buy filed a layoff notification for 161 employees from its healthcare division. The layoffs will be effective in September. (Hudson, Modern Healthcare, 6/24; Turner, Modern Healthcare, 7/10)
  • New Jersey: Last week, Merck announced plans to purchase Verona Pharma for $10 billion. Verona is a biotech company that specializes in lung disease treatments. One of Verona's drugs, Ohtuvayre, was approved to treat chronic obstructive pulmonary disease (COPD) last year, and its commercial launch has exceeded Wall Street expectations. According to Visible Alpha, Ohtuvayre is expected to bring in over $4 billion in peak annual sales. "Today's announced agreement with Merck is the culmination of years of focus and determination by the Verona Pharma team advancing Ohtuvayre," said Verona CEO David Zaccardelli. "Since launching Ohtuvayre in August 2024 we have seen rapid and accelerating uptake in the U.S. We believe Merck's commercial footprint and industry-leading clinical capabilities will help accelerate the potential of Ohtuvayre to reach more patients living with COPD." According to STAT, the current acquisition is Merck's largest since the company purchased Prometheus Biosciences for $11 billion in 2023 and Acceleron Pharma for $11.5 billion in 2021. (Feuerstein, STAT+ [subscription required], 7/9)

M&A—To What End?

The most successful M&A deals are focused on delivering a better product to patients and purchasers, rather than insulating the system from competition. Find out what separates these deals from the rest.


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