Merck Acquires Verona Pharma for $10 Billion, Adds COPD Drug to Portfolio
Deal News | Jul 09, 2025 | Abingworth LLP
Merck has entered into a definitive agreement to acquire Verona Pharma for approximately $10 billion. This strategic acquisition allows Merck to integrate Ohtuvayre® (ensifentrine), a new COPD treatment, into its cardio-pulmonary portfolio. Ohtuvayre, approved by the FDA in June 2024, is the first novel inhaled treatment for COPD in two decades, combining bronchodilatory and non-steroidal anti-inflammatory properties. The acquisition aligns with Merck's science-led business development strategy and is expected to bolster its cardio-pulmonary treatment capabilities. The deal, subject to shareholder and regulatory approvals, is anticipated to close in Q4 2025. Both companies' boards have approved the transaction, and financial advisors were engaged during the process.
Sectors
- Biopharmaceuticals
- Healthcare
- Financial Services
Geography
- United States – Merck is based in the U.S., and the acquisition significantly impacts the U.S. market.
- United Kingdom – Verona Pharma is headquartered in the UK and the acquisition will proceed under UK law.
Industry
- Biopharmaceuticals – The article involves companies that develop and market pharmaceutical products, focusing on biopharmaceuticals in the context of chronic obstructive pulmonary disease (COPD) treatment.
- Healthcare – The acquisition brings into focus advancements in healthcare treatments, particularly for chronic respiratory diseases.
- Financial Services – The article discusses a significant financial transaction and the involvement of financial advisors.
Financials
- $10 billion – Total transaction value for the acquisition of Verona Pharma by Merck.
- $107 per American Depository Share (ADS) – Price per American Depository Share, with each representing eight Verona Pharma ordinary shares.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Merck & Co., Inc. | Bidding Company | Company | An American multinational pharmaceutical company known as MSD outside of the U.S. and Canada. |
| Verona Pharma plc | Target Company | Company | A UK-based biopharmaceutical company specializing in respiratory diseases. |
| Citi | Financial Advisor to Merck | Company | Acts as a financial advisor to Merck in the transaction. |
| Morgan Stanley & Co. LLC | Financial Advisor to Merck | Company | Provides financial advisory services to Merck for the acquisition. |
| Freshfields LLP | Legal Advisor to Merck | Company | Acts as the legal advisor to Merck for the transaction. |
| Centerview Partners LLC | Financial Advisor to Verona Pharma | Company | Serves as the exclusive financial advisor to Verona Pharma. |
| Latham & Watkins LLP | Legal Advisor to Verona Pharma | Company | Provides legal advisory services to Verona Pharma in the acquisition. |