The share price of Verona Pharma plc (NASDAQ: VRNA) surged 20.62% to close at $104.77 on Wednesday, marking a significant increase in the previous trading session.
Merck To Acquire Verona Pharma.
The spike followed the news that Verona Pharma had struck a final acquisition deal with Merck & Co., which valued the business at around $10 billion. According to the deal, Verona Pharma will be purchased by Merck through a subsidiary for $107 each American Depository Share (ADS), which corresponds to eight common shares of Verona.
Enhancing Pulmonary Portfolio
Through the purchase, Merck will be able to include Ohtuvayre (ensifentrine), the flagship treatment from Verona Pharma, into its cardio-pulmonary pipeline. A first-in-class selective dual inhibitor of phosphodiesterase 3 and 4 (PDE3 and PDE4), ohtuvayre has anti-inflammatory and bronchodilator properties.
Ohtuvayre is the first new inhaled treatment for chronic obstructive pulmonary disease (COPD) in almost 20 years, having been approved by the U.S. Food and Drug Administration in June 2024. Additionally, it is being clinically evaluated to treat bronchiectasis in patients who do not have cystic fibrosis.
Dedication to Long-Term Development and Innovation
Merck’s objective to provide high-value, scientifically driven medicinal solutions is in line with its acquisition of Verona Pharma. Ohtuvayre’s inclusion helps Merck achieve its objective of meeting unmet clinical requirements in respiratory care while fostering both short- and long-term growth.
Ohtuvayre targets COPD patients who remain symptomatic despite current therapies, offering a distinct mechanism of action that merges bronchodilation with non-steroidal anti-inflammatory effects.
Accelerating Ohtuvayre’s Market Potential
Strong and increasing demand has been observed by Verona Pharma since the August 2024 debut of Ohtuvayre in the United States. The drug’s clinical development and market penetration are anticipated to be significantly accelerated by Merck’s extensive worldwide reach and strong commercial infrastructure.
Approved unanimously by the boards of directors of both firms, the deal is expected to conclude in the fourth quarter of 2025 and is structured as a plan of arrangement regulated by UK law. Upon completion, Merck will capitalize the majority of the purchase price as an intangible asset tied to Ohtuvayre.
