Merck to Acquire Verona Pharma for $10 Billion to Expand Respiratory Therapeutics Portfolio

Intelligent Finance APP learned that, according to reports, Merck & Co., Inc. (MRK.US) is about to reach a deal to acquire respiratory drug manufacturer Verona Pharma plc (VRNA.US) for approximately 10 billion US dollars. Informed sources stated that Merck will acquire this biotechnology company at a price of 107 US dollars per ADS, which is a 23% premium over the latter's closing price on Tuesday.

Informed sources stated that the negotiations have entered the final stages, and if there are no obstacles, an agreement could be announced as early as Wednesday. According to reports, the deal values Verona Pharma at approximately $10 billion.

Verona Pharma plc is focused on the development of Ohtuvayre, a drug that received approval from the U.S. Food and Drug Administration (FDA) last year for the treatment of chronic obstructive pulmonary disease (COPD), a lung condition that causes breathing difficulties.

Verona Pharma plc reported that the sales of Ohtuvayre in the first quarter of 2025 were $71.3 million. Analysts expect the drug's annual peak sales to be at least $1 billion, with some analysts forecasting sales to exceed $4 billion.

Verona Pharma plc is also testing the potential of inhaled therapies for treating other respiratory diseases, such as asthma and cystic fibrosis.

Informed sources said that MSD's acquisition will accelerate the drug's launch in regions outside the United States. According to reports, this deal will also become MSD's largest acquisition since 2023.

Tuesday after the U.S. stock market closed, Verona Pharma plc rose 19%, while Merck & Co., Inc. fell 0.2%.