In an effort to diversify its operations and reshape its portfolio, Merck today announced an agreement to acquire Verona Pharmacy for $10 billion. Following the announcement, Verona’s shares surged 20%.
The deal grants Merck control of Ohtuvayre, a recently approved treatment for chronic obstructive pulmonary disease, often known as “smoker’s lung.”
“This acquisition of Verona Pharma reflects the commitment we have to delivering innovative treatments to patients and our ability to execute on our science-led and value-driven business development strategy,” Robert M. Davis, Chairman and CEO of Merck stated in a press release.
Davis told investors, “Ohtuvayre complements and expands our pipeline and portfolio of treatments for cardio-pulmonary diseases while delivering near- and long-term growth as well as value for shareholders. This novel, first-in-class treatment addresses an important unmet need for COPD patients persistently symptomatic based on its unique combination of bronchodilatory and non-steroidal anti-inflammatory effects. We look forward to welcoming the talented Verona Pharma team to Merck.”
David Zaccardelli, President and CEO of Verona Pharma, stated; “Today’s announced agreement with Merck is the culmination of years of focus and determination by the Verona Pharma team advancing Ohtuvayre, the first novel inhaled mechanism for the maintenance treatment of COPD in two decades… We believe Merck’s commercial footprint and industry-leading clinical capabilities will help accelerate the potential of Ohtuvayre to reach more patients living with COPD. This agreement will enable the strong launch trajectory of this important medicine and provides value to Verona Pharma shareholders.”
Today’s deal is Merck’s biggest since acquiring Prometheus Biosciences for $10.8 billion in 2023.
The transaction is scheduled to close in the fourth quarter of 2025.
By CEO NA Editorial Staff
