Merck acquires Verona Pharma, with U.S. headquarters in Raleigh, in $10 billion deal

Verona Pharma, a year after receiving regulatory approval for its landmark chronic obstructive pulmonary disease (COPD) treatment, is being acquired by pharmaceutical giant Merck in a deal worth about $10 billion.

London-based Verona, with U.S. headquarters in Raleigh, has seen strong results from its new drug, Ohtuvayre (ensifentrine), since launching it in August 2024. It’s the first new inhaled COPD treatment to hit the U.S. market in more than 20 years.

The drug will add to Merck’s portfolio of cardiopulmonary treatments. Buying Verona represents Merck’s biggest acquisition since 2021 and is expected to help cushion the effects of Merck losing patent protection in 2028 for its top-selling cancer drug, Keytruda, according to a report in Barron’s.

In a joint announcement, the companies said a Merck subsidiary would pay $107 for each of Verona’s American Depositary Receipts (ADRs), valuing the transaction at roughly $10 billion. The companies said they expect the deal to close in the fourth quarter of this year, pending regulatory approval.

“Since launching Ohtuvayre in 2024, we have seen rapid and accelerating uptake in the U.S.,” David Zaccardelli, Verona’s president and CEO, said in a news release. “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.”

Verona has been adding to its Triangle workforce since opening its U.S. headquarters in Raleigh in 2020. The company had 209 full-time employees at the end of 2020, with plans to expand its sales team this year, Triangle Business Journal reported in April.

Merck already has a sizable footprint in the Triangle with its Durham operations, which include a $1 billion vaccine manufacturing facility that opened in March. The company’s North Carolina locations include a 500,000-square-foot manufacturing center in Wilson and a biotechnology learning center in Greensboro with North Carolina A&T State University.

The U.S. Food and Drug Administration approved Ohtuvarye as a treatment for COPD in June 2024. The drug’s launch propelled a 95% increase in Verona’s net sales in the first quarter, compared with the fourth quarter of 2024, the company said in its most recent earnings release. Verona, whose stock is traded on Nasdaq, said at the time that more than 25,000 prescriptions for Ohtuvarye had been filled.

Ohtuvarye is a selective dual inhibitor of two enzymes involved in heart and lung function, phosphodiesterase 3 and 4 (PDE3 and PDE4). When these enzymes are blocked, it leads to improved bronchodilation, or opening of the airways in the lungs.

Verona has also begun Phase 2 clinical trials for Ohtuvarye as a treatment for non-cystic fibrosis bronchiectasis. Currently, there are no FDA-approved treatments for that condition.

“The acquisition of Verona Pharma reflects the commitment we have to delivering innovative treatments to patients and our ability to execute on our science-led and value-driven business development strategy,” Merck Chairman and CEO Robert M. Davis said in the news release.