Merck & Co. To Acquire Verona Pharma for $10 Bn
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Merck has agreed to acquire biopharmaceutical company Verona Pharma in a deal valued at $10bn. The acquisition will be made by the subsidiary of Merck, which is known as MSD outside of the US and Canada. The deal values London-based Verona at about $107 per American depository share, the report said, citing three people familiar with the matter. The reported purchase price represents a premium of about 23% to Verona ADS’ last close on the NASDAQ.
MSD has been snapping up pipeline assets through acquisitions and licensing deals in the last few years as it prepares for the loss of patent protection for its $29.5 billion cancer immunotherapy blockbuster Keytruda (pembrolizumab), which accounted for just under half (46%) of the group’s global sales last year. MSD chief executive Robert Davis said earlier this year that he sees acquisitions up to $15 billion in value as the “sweet spot” for the company and, while he reckons it is well-prepared for the loss of Keytruda exclusivity, he added: “We have always said we do believe we need to do more to continue to augment the pipeline we’ve built.”
Verona Pharma president and CEO David Zaccardelli stated: “Today’s announced agreement with Merck is the culmination of years of focus and determination by the Verona Pharma team advancing Ohtuvayre, the first novel inhaled mechanism for the maintenance treatment of COPD in two decades. “Since launching Ohtuvayre in August 2024, we have seen rapid and accelerating uptake in the US. We believe Merck’s commercial footprint and industry-leading clinical capabilities will help accelerate the potential of Ohtuvayre to reach more patients living with COPD. This agreement will enable the strong launch trajectory of this important medicine and provides value to Verona Pharma shareholders.”
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