10th Jul 2025 09:06
(Alliance News) - Merck & Co Inc on Wednesday said it has struck a deal to acquire Verona Pharma PLC, bolstering its respiratory diseases offering.
Merck will fork out USD107 per American depository share in Verona, the Rahway, New Jersey-based pharmaceutical firm said. Each ADS represents eight Verona ordinary shares.
The sum is a 23% premium to Verona's closing price on Tuesday.
Verona Pharma's ADRs surged 21% to USD104.77 on Wednesday in New York, giving it a market value of USD8.92 billion. The stock edged 0.1% lower after hours to USD104.70.
Merck shares rose 2.9% to USD83.71 on Wednesday, before adding another 0.1% after hours. It has a market capitalisation of USD210.20 billion.
The buy of London-based Verona Pharma will add Ohtuvayre to Merck's "growing cardio-pulmonary pipeline and portfolio".
Ohtuvayre has been US Food & Drug Administration-approved for the treatment of chronic obstructive pulmonary disease in adults since June.
"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," Merck & Co Chair and Chief Executive Officer Robert Davis said.
"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."
RTW Biotech Opportunities Ltd, a life sciences-focused investor listed in London, on Thursday noted the announcement.
RTW said it is Merck's chunkiest acquisition since the USD10.8 billion buy of Prometheus Biosciences, once also part of RTW Biotech's portfolio.
"Merck's acquisition of Verona, following its 2023 purchase of Prometheus, is a powerful validation of our long-held thesis: that small and midcap biotech companies represent fertile ground for transformative innovation, and that large pharma must increasingly look to these emerging players to replenish and diversify their pipelines," said Rod Wong, chief investment officer of RTW Investments.
The deal is expected to close in the fourth quarter of the year.
RTW Biotech shares fell 2.0% to USD1.20 each in early trade in London.
By Eric Cunha, Alliance News news editor
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