July 9 (Reuters) - Merck ( MRK ) is nearing a $10

billion deal to buy lung diseases focussed Verona Pharma

, as the U.S. drugmaker is eyeing deals to offset the

upcoming patent expiry of its blockbuster cancer drug, the

Financial Times reported on Wednesday.

The deal values London-based Verona at about $107 per

American depository share, the report said, citing three people

familiar with the matter. The reported purchase price represents

a premium of about 23% to Verona ADS' last close on the NASDAQ.

The deal would be Merck's ( MRK ) largest since its $10.8

billion buyout of Prometheus Biosciences in 2023.

News of the upcoming deal sent Verona's U.S.-listed shares

soaring about 18% to $102.8 in premarket trading.

Merck ( MRK ) and London-based Verona didn't immediately respond to

Reuters requests for comment. Reuters couldn't immediately

verify the report.

Merck ( MRK ) has long leaned on its blockbuster cancer drug

Keytruda, which generated nearly $30 billion in sales in 2024,

but faces looming patent expiries starting in 2028.

In response, the company has ramped up deal-making to

broaden its revenue base.

Verona, which is also listed in Frankfurt, rose into

prominence with the approval of its inhalable, non-steroid

treatment Ohtuvayre for patients with chronic obstructive

pulmonary disease, a condition affecting nearly 16 million

Americans. Its market capitalization was about $7.39 billion,

according to LSEG data.

Over 96% of Verona's first quarter revenue of about $76

million came from the Ohtuvayre therapy.

Last month, FT reported that Merck ( MRK ) held talks to buy Swiss

biotech MoonLake Immunotherapeutics ( MLTX ) for more than $3

billion, while, in March, the U.S. drugmaker also signed an up

to $2 billion licensing agreement for a heart disease drug with

Jiangsu Hengrui Pharmaceuticals.

Merck's ( MRK ) acquisition would fast track the international

launch of the drug in countries outside the U.S., the FT report

added.

Shares of Merck ( MRK ), valued at over $204 billion as of Tuesday,

are down by more than 18% this year.