Merck to Acquire Verona Pharma for $100 Billion, 23% Premium

Merck & Co., Inc. is nearing a deal to acquire Verona Pharma plc for approximately $100 billion. The pharmaceutical giant is set to purchase Verona Pharma at a price of $107 per American Depositary Share (ADS), marking a 23% premium over Verona Pharma's closing price on Tuesday. Sources close to the matter indicate that negotiations are in the advanced stages, and an agreement could be announced as early as Wednesday, barring any unforeseen obstacles. The acquisition values Verona Pharma at around $100 billion.

Verona Pharma specializes in the development of respiratory drugs, with a particular focus on Ohtuvayre, a medication approved by the U.S. Food and Drug Administration (FDA) in the previous year for the treatment of chronic obstructive pulmonary disease (COPD). This condition is characterized by breathing difficulties and is a significant health concern. Verona Pharma reported that Ohtuvayre's sales for the first quarter of 2025 amounted to $71.3 million. Analysts project that the drug's peak annual sales could reach at least $1 billion, with some estimates suggesting it could exceed $4 billion.

In addition to Ohtuvayre, Verona Pharma is exploring the potential of inhaled therapies for other respiratory conditions, including asthma and cystic fibrosis. The acquisition by Merck is expected to accelerate the global rollout of Ohtuvayre, particularly in regions outside the United States. This deal would also be Merck's largest acquisition since 2023.

Merck's acquisition of Verona Pharma aligns with its strategic goal of expanding its presence in the respiratory health market. Verona Pharma's pipeline includes several promising candidates for treating COPD and asthma, areas with significant unmet medical needs. By acquiring Verona Pharma, Merck aims to enhance its capabilities in respiratory drug development and commercialization, potentially leading to new therapeutic options for patients suffering from these conditions. The acquisition underscores Merck's commitment to strengthening its position in the respiratory health sector and its confidence in Verona Pharma's pipeline and technology. The deal is subject to regulatory approvals and other customary closing conditions, with the transaction expected to be completed in the near future. Once finalized, the acquisition will position Merck as a leading player in the respiratory health market, with a comprehensive portfolio of treatments for respiratory diseases.