Merck To Acquire Verona For $10B In Bid To Expand Cardio-Pulmonary Pipeline

Merck (MRK) and Verona Pharma Plc. (VRNA) on Wednesday announced that the two companies have entered into a definitive agreement under which Merck, through a subsidiary, will acquire Verona Pharma.

Merck will acquire Verona for $107 per American Depository Share (ADS), each of which represents eight Verona Pharma ordinary shares, for a total transaction value of approximately $10 billion.

The purchase price represents a 23.2% upside to Verona ADS’s closing price on Tuesday.

VRNA shares were trading 21% higher in the pre-market session at the time of writing.

London-based Verona is a biopharmaceutical company focused on respiratory diseases.

Through the acquisition, Merck will add Ohtuvayre to its expanding cardiovascular and pulmonary pipeline and portfolio. Ohtuvayre was approved by the U.S. Food and Drug Administration in 2024 for the maintenance treatment of chronic obstructive pulmonary disease (COPD) in adult patients. The drug is also being evaluated in clinical trials for the treatment of non-cystic fibrosis bronchiectasis.

Ohtuvayre brought in net sales of $71.3 million for Verona in the first quarter of 2025, marking a growth of 95% from the fourth quarter of 2024.

The acquisition, Merck said, is expected to drive growth into the next decade.

“Ohtuvayre complements and expands our pipeline and portfolio of treatments for cardio-pulmonary diseases while delivering near- and long-term growth as well as value for shareholders,” Merck CEO Robert M Davis said.

The transaction, which was unanimously approved by both the Merck and Verona Pharma Boards of Directors, is expected to close in the fourth quarter of 2025.

On Stocktwits, retail sentiment around Verona jumped from ‘bearish’ to ‘extremely bullish’ over the past 24 hours while message volume jumped from ‘low’ to ‘extremely high’ levels.

Retail sentiment around Merck, meanwhile, continues to be in the ‘bearish’ territory, accompanied by ‘normal’ message volume.

Shares of VRNA have risen 87% this year while MRK shares have declined nearly 18%.

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