Merck has announced plans to acquire UK-based Verona Pharma for $10 billion. This acquisition would help the U.S.-based drugmaker to strengthen its respiratory treatment, and reduce dependence on its blockbuster cancer treatment.
Through this acquisition, Merck would add Ohtuvayre to its portfolio. The U.S. Food and Drug Administration approved Ohtuvayre in June 2024 for the maintenance treatment of chronic obstructive pulmonary disease (COPD) in adult patients. Ohtuvayre is the first novel inhaled mechanism for the treatment of COPD in more than 20 years and combines bronchodilator and non-steroidal anti-inflammatory effects.
“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,” said Robert M. Davis, chairman and chief executive officer, Merck. “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.
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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 chief executive officer of Verona Pharma said, “Since launching Ohtuvayre in August 2024 we have seen rapid and accelerating uptake in the U.S. 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 provide value to Verona Pharma shareholders.”
In 2021, Merck spent $11.5 billion for Acceleron and its pulmonary arterial hypertension (PAH) treatment, now known commercially as Winrevair. The company also spent $10.8 billion in 2023 to acquire Prometheus and its late-stage bowel disease candidate PRA023. These acquisitions are expected to compensate for the expected loss of patent protection later this decade for cancer superstar Keytruda, which generated $29.5 billion in sales in 2024, accounting for 46% of the company’s revenue. “The sweet spot we see is that $1 to $15-billion range,” Davis said. “As we’ve also consistently indicated, we’re willing to go beyond that for the right opportunity.”
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Davis also mentioned that the company plans to launch roughly 20 “new growth drivers in the coming years, almost all of which have blockbuster potential,” according to Fierce Pharma. He added that Merck will continue to scout out oncology, immunology and cardiometabolic assets through business development.
Merck and Verona Pharma are expected to close the deal by the fourth quarter of the year. Merck has agreed to pay $107 per share, which is a 23% markup on their price at market close Tuesday and a 39% premium on their 60-day volume-weighted average price. This is the second-largest deal in biopharma this year, ranking behind Johnson & Johnson’s $14.6 billion acquisition of Intra-Cellular.