Merck is set to acquire Verona Pharma in a deal valued at approximately $10 billion, expanding its footprint in respiratory treatments. The acquisition will give Merck ownership of Ohtuvayre, a recently approved medication for chronic obstructive pulmonary disease (COPD).
Ohtuvayre, an inhaled treatment, received FDA approval over a year ago for adult patients with COPD — a progressive condition that affects breathing by damaging the lungs and airways. More than 14 million U.S. adults are affected by the disease, according to the National Institutes of Health.
Merck Chairman and CEO Robert Davis said the acquisition aligns with the company’s strategy to grow its cardiopulmonary portfolio while adding long-term value for shareholders. “Ohtuvayre complements and expands our pipeline,” Davis noted.
Verona Pharma’s CEO David Zaccardelli highlighted the benefit of Merck’s global commercial reach, saying it could significantly improve access to Ohtuvayre for COPD patients.
London-based Verona launched Ohtuvayre last August as its first commercial drug. The treatment is also being investigated as a potential therapy for non-cystic fibrosis bronchiectasis, another chronic lung condition.
Under the terms of the agreement, Merck will pay $107 per American Depository Share of Verona Pharma — each representing eight ordinary shares of the company.
The boards of both companies have approved the deal, which is expected to close in the fourth quarter, pending shareholder approval and clearance by the High Court of Justice in England and Wales.
Following the announcement, shares of Merck, based in Rahway, New Jersey, edged up 25 cents to $81.63 in premarket trading on Wednesday.
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