In a strategic move to bolster its respiratory treatment offerings, pharmaceutical giant Merck & Co. announced on July 9, 2025, its acquisition of U.K.-based Verona Pharma for approximately $10 billion. The deal, valued at $107 per American Depositary Share (ADS), represents a 23% premium over Verona’s closing price prior to the announcement. This acquisition is poised to enhance Merck’s position in the respiratory disease market, particularly through the addition of Verona’s flagship chronic obstructive pulmonary disease (COPD) treatment, Ohtuvayre.
Ohtuvayre, approved by the U.S. Food and Drug Administration in June 2024, is the first novel inhaled therapy for COPD maintenance treatment in over two decades. The drug combines bronchodilator and non-steroidal anti-inflammatory effects, targeting both phosphodiesterase 3 and 4 enzymes. Since its U.S. launch in August 2024, Ohtuvayre has demonstrated rapid market uptake, with $42.3 million in sales reported for 2024 and $71.3 million in the first quarter of 2025 alone. Analysts project that the drug could achieve peak annual sales of up to $4 billion by the mid-2030s.
Merck’s acquisition of Verona Pharma aligns with its strategic objective to expand its cardio-pulmonary treatment portfolio and offset anticipated revenue losses from its blockbuster cancer drug, Keytruda, which faces patent expiration in 2028. Keytruda generated $29.5 billion in sales in 2024, and its impending patent cliff underscores the importance of diversifying Merck’s revenue streams.
“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,” stated Merck CEO Robert Davis. “This novel, first-in-class treatment …”
Verona Pharma’s CEO, David Zaccardelli, expressed optimism about the acquisition, noting that Merck’s extensive commercial infrastructure and clinical expertise would accelerate Ohtuvayre’s reach to more patients. “Since launching Ohtuvayre … we have seen rapid and accelerating uptake in the U.S. 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,” Zaccardelli said.
The acquisition has been unanimously approved by the boards of both companies and is expected to close in the fourth quarter of 2025, pending shareholder approval and regulatory clearances, including sanction by the High Court of Justice of England and Wales. The transaction will be effected by way of a scheme of arrangement under U.K. law.
Verona Pharma, originally stemming from a King’s College London research initiative, was founded in 2006 through a merger involving Rhino Pharma. The company initially listed on London’s Alternative Investment Market before moving to Nasdaq in 2020 to access deeper U.S. investment pools. Ohtuvayre represents Verona’s first commercial product and has been a significant milestone in the company’s development.
The acquisition reflects a broader trend in the pharmaceutical industry, where companies are actively seeking to expand their portfolios through strategic acquisitions, particularly in areas with high unmet medical needs. COPD, a progressive lung disease characterized by airflow limitation, affects over 14 million adults in the United States and is a leading cause of morbidity and … The disease imposes a substantial economic burden, with estimated annual costs of $50 billion in the U.S. alone.
By integrating Verona Pharma’s innovative therapy into its portfolio, Merck aims to address this significant health challenge and reinforce its commitment to delivering transformative treatments for patients worldwide.
