
Behind the Headlines, Episode 21: Waters-BD Merger, Merck’s $10B Bet, and Biotech’s Investment Frontiers
In episode 21, the panel explores how major deals, policy volatility, and investment shifts are redrawing the life sciences map. Alex Philippidis, Senior Business Editor at Genetic Engineering & Biotechnology News and Inside Precision Medicine; Hari Pujar, PhD, Chief Operating Officer of Tessera Therapeutics; and Josh Schimmer, MD, Biotech Equity Research Analyst and Managing Director at Cantor Fitzgerald, unpack the deeper implications behind this past week's biggest headlines.
Waters, BD Join Forces in $17.5B Merger
The panel opens with analysis of the announced
Merck Expands Respiratory Portfolio with Verona Acquisition
Attention then turns to Merck’s $10 billion acquisition of Verona Pharma, bringing Ohtuvayre—its FDA-approved COPD drug—into Merck’s respiratory portfolio. The panel notes this as a strategic hedge against Merck’s looming Keytruda patent expiry. “The Merck deal looks good at first glance,” said Kevin Gade, COO at Bahl & Gaynor. “Given their home run with Prometheus and Winrevair, this (Ohtuvayre) looks like a potential complementary therapy” (2).
Policy Risks and AI Deployment in Biopharma
The conversation also touches on external pressures, including potential 200% tariffs that have sent companies scrambling to develop contingency plans (3). On the tech front, panelists assess how artificial intelligence is being deployed across discovery, development, and operational pipelines—and where its value is already being realized.
Where Capital Is Flowing Now
To round out the episode, panelists highlight some of today’s most active biotech investment targets: psychedelic compounds, Chinese follow-on products, and small molecule drugs aimed at unmet clinical needs.
Watch the full episode above for more insights into the evolving biopharma landscape, and catch up on previous episodes of
References
Waters and BD's Biosciences & Diagnostic Solutions Business to Combine, Creating a Life Science and Diagnostics Leader Focused on Regulated, High-Volume Testing. News release. BD. July 14, 2025. https://investors.bd.com/news-events/press-releases/detail/892/waters-and-bds-biosciences-diagnostic-solutions-business-to-combine-creating-a-life-science-and-diagnostics-leader-focused-on-regulated-high-volume-testing
Merck to Acquire Verona Pharma, Expanding its Portfolio to Include Ohtuvayre® (ensifentrine), a First-In-Class COPD Maintenance Treatment for Adults and Expected to Drive Growth into the Next Decade. News release. Merck. July 9, 2025. https://www.merck.com/news/merck-to-acquire-verona-pharma-expanding-its-portfolio-to-include-ohtuvayre-ensifentrine-a-first-in-class-copd-maintenance-treatment-for-adults-and-expected-to-drive-growth-into-the-next-dec/
Gilchrest, K. Trump’s 200% Tariff Threat Leaves Pharma Firms Scrambling with Scenario Planning. CNBC. July 11, 2025. https://www.cnbc.com/2025/07/11/trump-200percent-pharma-tariffs-threaten-to-push-up-drug-prices-hit-margins.html
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