U.S. drugmaker Merck is nearing a deal worth about $10 billion to buy Verona Pharma , a company focused on therapies for lung diseases, the Financial Times reported on Wednesday.

Merck will pay $107 per American depository share for Verona, the report said, citing three people familiar with the matter. It would be Merck's largest takeover since 2023.

Merck and London-based Verona didn't immediately respond to Reuters requests for comment. Reuters couldn't immediately verify the report.

The reported purchase price will be at a premium of about 23% to Verona ADS' last close on the NASDAQ. Verona has a market capitalization of about $7.39 billion, according to LSEG data.

Merck 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 that affects nearly 16 million Americans.

Over 96% of Verona's first quarter revenue of about $76 million came from the Ohtuvayre therapy.

The deal is the largest for Merck since 2023, when it acquired Prometheus Biosciences for $10.8 billion.

Last month, FT reported that U.S. drugmaker held talks to buy Swiss biotech MoonLake Immunotherapeutics for more than $3 billion, while, in March, Merck also signed an up to $2 billion licensing agreement for a heart disease drug with Jiangsu Hengrui Pharmaceuticals.

Merck’s acquisition would fast track the international launch of the drug in countries outside the US, the FT report added.

Shares of Merck, valued at over $204 billion as of Tuesday, are down by over 18% this year, according to LSEG data.

(Reporting by Kanjyik Ghosh in Bengaluru; Editing by Mrigank Dhaniwala and Nivedita Bhattacharjee)