Merck completes $10 billion acquisition of Verona Pharma

RAHWAY, N.J. - Merck (NYSE:MRK) announced Tuesday it has completed its acquisition of Verona Pharma (Nasdaq:VRNA) in a deal valued at approximately $10 billion. The transaction adds Ohtuvayre (ensifentrine), a first-in-class COPD maintenance treatment, to Merck’s cardio-pulmonary portfolio. The acquisition further strengthens Merck’s market position, with the company currently maintaining a robust $221.8 billion market capitalization and generating $63.62 billion in revenue over the last twelve months, according to InvestingPro data.

Under the terms of the agreement, Merck acquired all outstanding shares of Verona Pharma for $107 per American Depositary Share. Verona Pharma is now a wholly-owned subsidiary of Merck, and its shares will no longer trade on the Nasdaq Global Market. InvestingPro analysis indicates Merck is currently undervalued, trading at an attractive P/E ratio of 13.7x while maintaining strong financial health metrics.

Ohtuvayre, approved by the U.S. Food and Drug Administration in June 2024, is the first novel inhaled mechanism for COPD maintenance treatment introduced in more than 20 years. The therapy functions as a selective dual inhibitor of phosphodiesterase 3 and 4, combining bronchodilator and non-steroidal anti-inflammatory effects.

"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 Robert M. Davis, chairman and chief executive officer of Merck, in a press release statement.

The acquisition is expected to negatively impact Merck’s non-GAAP earnings per share by approximately $0.16 in the first 12 months. This reflects costs associated with financing the transaction, partially offset by Ohtuvayre performance. Merck maintains a strong financial position with a "GREAT" overall financial health score and robust cash flows to support its growth initiatives. Get access to detailed financial analysis and 10+ additional ProTips for Merck with InvestingPro, including comprehensive valuation metrics and growth projections.

Chronic obstructive pulmonary disease affects more than 390 million people worldwide and is the fourth leading cause of death globally. Common symptoms include shortness of breath, persistent cough, wheezing, and chest tightness.

Ohtuvayre is also currently being evaluated in clinical trials for the treatment of non-cystic fibrosis bronchiectasis.

In other recent news, Merck & Co. reported its Q2 2025 earnings, revealing a 2% decrease in total revenues to $15.8 billion. Despite this decline, the company noted a 7% growth in revenue when excluding sales from China for its GARDASIL vaccine. Merck also reported an earnings per share (EPS) of $2.13 on a non-GAAP basis. The company has expressed optimism about growth prospects for the latter half of the year, driven by new product launches and strategic initiatives. These developments come amidst the company’s efforts to bolster its market position. No recent analyst upgrades or downgrades were noted in the available information.

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