Pharmaceutical company Merck agrees to acquire Verona Pharma in a massive deal worth $10 billion.

Merck to Acquire Verona Pharma for $10 Billion, Boosting Cardio-Pulmonary Portfolio

Pharmaceutical giant Merck has announced its intention to acquire Verona Pharma, a UK-based biotech company focused on respiratory diseases, for approximately $10 billion. The deal, expected to close in the fourth quarter of 2025, centers on Verona's innovative COPD drug, Ohtuvayre.

Ohtuvayre, approved by the FDA in June 2024, is the first new inhaled treatment for chronic obstructive pulmonary disease (COPD) in over 20 years. This first-in-class inhibitor of phosphodiesterase 3 and 4 (PDE3 and PDE4) combines bronchodilator and anti-inflammatory effects, making it a novel, first-in-class treatment that addresses an important unmet need for COPD patients persistently symptomatic.

Since its launch in August 2024, Ohtuvayre has seen rapid and accelerating uptake in the U.S. Merck believes that its commercial footprint and industry-leading clinical capabilities will help accelerate the potential of Ohtuvayre to reach more COPD patients.

Robert M. Davis, chairman and chief executive officer of Merck, stated that the acquisition of Verona Pharma is a reflection of their commitment to delivering innovative treatments to patients. David Zaccardelli, president and chief executive officer of Verona Pharma, mentioned that the announced agreement with Merck is the culmination of years of focus and determination by the Verona Pharma team advancing Ohtuvayre.

The acquisition price is $107 per American Depository Share (ADS), with each ADS representing eight ordinary shares of Verona Pharma. Most of the purchase price will be capitalized as an intangible asset for Ohtuvayre.

Ohtuvayre is also being studied for non-cystic fibrosis bronchiectasis. The acquisition will add this innovative treatment to Merck's cardio-pulmonary portfolio, expanding and complementing their pipeline and treatments for cardio-pulmonary diseases.

The agreement between Merck and Verona Pharma will enable the strong launch trajectory of Ohtuvayre. Citi, Morgan Stanley, Freshfields, Centerview Partners, and Latham & Watkins are involved in the transaction as financial and legal advisors for Merck and Verona Pharma, respectively.

This acquisition is expected to deliver near- and long-term growth, as well as value for Merck's shareholders. Verona Pharma believes that the deal provides value to its shareholders, marking a significant milestone for both companies and the patients they aim to serve.

Pharmaceutical company Merck agrees to acquire Verona Pharma in a massive deal worth $10 billion.