Merck has finalized its acquisition of Verona Pharma in a transaction valued at $10 billion, the company announced on Tuesday. The deal brings Ohtuvayre, a new treatment for chronic obstructive pulmonary disease (COPD), into Merck’s cardio-pulmonary portfolio.
Following the acquisition, Verona Pharma is now a wholly owned subsidiary of Merck. As a result, American Depositary Shares (ADS) of Verona Pharma will no longer be available for trading on the Nasdaq Global Market.
Merck Chairman and CEO Robert M. Davis stated, “The Verona Pharma acquisition strengthens and complements our portfolio of treatments for patients with cardio-pulmonary diseases to include Ohtuvayre, while delivering near and long-term growth as well as value for shareholders.”
He added, “The addition of Ohtuvayre is another strong example of our business development strategy, which focuses on opportunities where compelling science and value align. Ohtuvayre is a novel, first-in-class maintenance treatment targeting an important unmet need for adult patients with COPD. We look forward to applying our commercial capabilities and working with our talented new colleagues from Verona Pharma to build on the strong uptake and performance to date to reach even more patients with this important medicine.”
Ohtuvayre received approval from the U.S. Food and Drug Administration in June 2024 as a maintenance therapy for adults with COPD. It is the first inhaled therapy in over two decades that combines bronchodilator and non-steroidal anti-inflammatory effects in one molecule for this indication. The drug is also under clinical evaluation for use in treating non-cystic fibrosis bronchiectasis.
Under the terms of the agreement, Merck acquired all outstanding shares of Verona Pharma at $107 per ADS—each representing eight ordinary shares—resulting in an overall transaction value close to $10 billion.
COPD is a progressive respiratory disease that restricts airflow and causes breathing difficulties. Emphysema and chronic bronchitis are its most common forms. Symptoms often include shortness of breath, persistent cough producing mucus, wheezing, chest tightness or heaviness, and fatigue. Major risk factors are smoking and air pollution. As of 2019, over 390 million people worldwide were estimated to have COPD; it remains the fourth leading cause of death globally.
There is currently no cure for COPD.
