Merck to Acquire Verona Pharma for $10 Billion, Expanding Chronic Lung Disease Portfolio
Why we think this is very good
This acquisition by Merck represents a significant opportunity for Verona Pharma, with the $10 billion purchase price representing a substantial premium over the company's previous market valuation. The deal provides strong validation of Verona's COPD treatment Ohtuvayre and will allow Merck to leverage its commercial capabilities to accelerate the drug's reach and impact. While some financial details remain unquantified, the clear timeline, lack of shareholder dilution, and positive earnings impact make this a highly attractive transaction.
Key Points
- Merck to acquire Verona Pharma for $10 billion
- Acquisition price represents a 23% premium to Verona's previous closing share price
- Transaction expected to close in Q4 2025, subject to shareholder and regulatory approvals
- Verona's Ohtuvayre, a first-in-class COPD treatment, to be added to Merck's portfolio
Summary
Merck to acquire Verona Pharma for $10 billion, representing a 23% premium to Verona's previous closing share price. The acquisition will add Verona's Ohtuvayre, a first-in-class COPD treatment, to Merck's portfolio of chronic lung disease therapies. The transaction is expected to close in Q4 2025 and is subject to Verona shareholder and regulatory approvals. As of 31 May 2025, Verona represented 1.4% of RTW Biotech Opportunities Ltd's NAV.