Merck announced on Tuesday it had completed the acquisition of Verona Pharma, a $10 billion deal that strengthens Merck’s cardio-pulmonary portfolio with the drug Ohtuvayre, a first-in-class treatment for chronic obstructive pulmonary disease (COPD).
Verona Pharma is now a wholly owned subsidiary of Merck, and American Depositary Shares (ADS) of Verona Pharma will no longer be listed or traded on the Nasdaq Global Market.
“The Verona Pharma acquisition strengthens and complements our portfolio of treatments for patients with cardio-pulmonary diseases to include Ohtuvayre, while delivering near and long-term growth as well as value for shareholders,” said Merk Chairman and CEO Robert M. Davis in a statement on Tuesday.
“The addition of Ohtuvayre is another strong example of our business development strategy, which focuses on opportunities where compelling science and value align,” he said. “Ohtuvayre is a novel, first-in-class maintenance treatment targeting an important unmet need for adult patients with COPD. We look forward to applying our commercial capabilities and working with our talented new colleagues from Verona Pharma to build on the strong uptake and performance to date to reach even more patients with this important medicine.”
The U.S. Food and Drug Administration approved Ohtuvayre in June 2024 for the maintenance treatment of COPD in adult patients. Ohtuvayre is the first novel inhaled mechanism for the maintenance treatment of COPD in more than 20 years and combines bronchodilator and non-steroidal anti-inflammatory effects. Ohtuvayre is also being evaluated in clinical trials for the treatment of non-cystic fibrosis bronchiectasis.
Under the terms of the acquisition agreement, Merck, through a subsidiary, has acquired all outstanding shares of Verona Pharma for $107 per ADS, each of which represents eight Verona Pharma ordinary shares, for a total transaction value of approximately $10 billion.
Ohtuvayre is the first inhaled therapy for the maintenance treatment of adults with COPD that combines bronchodilator and non-steroidal anti-inflammatory activities in one molecule. Chronic obstructive pulmonary disease (COPD) is a progressive respiratory condition that causes restricted airflow and breathing problems. Emphysema and chronic bronchitis are the two most common types of COPD.
Common symptoms of COPD include shortness of breath, an ongoing cough or a cough that produces a lot of mucus, wheezing, chest tightness or heaviness and fatigue. Smoking and air pollution are the most common causes of COPD. More than 390 million people were estimated to be suffering from COPD worldwide as of 2019 and COPD is the fourth leading cause of death worldwide. There is no cure for COPD.
