HQ Team
July 9, 2025: Merck & Co. will acquire UK-based Verona Pharma Plc for about $10 billion and gain access to a respiratory drug approved by the US regulator, according to a statement from Merck.
The acquisition will grant Merck access to Verona’s new medicine called Ohtuvayre (ensifentrine) that works in a new way to help people with lung problems.
In June 2024, the U.S. Food and Drug Administration approved Ohtuvayre for adults who have chronic obstructive pulmonary disease (COPD). COPD is a lung condition that makes it hard to breathe.
Ohtuvayre is the first new type of inhaled medicine for COPD in over 20 years. It helps by opening up the airways (making it easier to breathe) and reducing inflammation (swelling and irritation) in the lungs without using steroids.
Non-cystic fibrosis bronchiectasis
Merck is also testing Ohtuvayre to see if it can help people with a condition called non-cystic fibrosis bronchiectasis, a lung condition where the airways (bronchi) become abnormally widened and damaged, leading to mucus buildup and repeated lung infections.
Merck will buy Verona Pharma through a subsidiary and will pay $107 per American Depository Share, according to the statement. The transaction is expected to close in the fourth quarter of 2025.
“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,” said Robert M. Davis, chairman and chief executive officer, Merck.
“This novel, first-in-class treatment addresses an important unmet need for COPD patients persistently symptomatic based on its unique combination of bronchodilatory and non-steroidal anti-inflammatory effects.”
Amortization
Merck will buy the rights to the drug Ohtuvayre, most of the money they pay will be recorded in their accounting books as an “intangible asset.”
This intangible asset will then be gradually expensed over time on the company’s financial statements, following accounting rules called GAAP (Generally Accepted Accounting Principles). This gradual expense is called amortization, and it spreads out the cost of the acquisition over the expected useful life of the drug.
“Since launching Ohtuvayre in August 2024, we have seen rapid and accelerating uptake in the US,” said David Zaccardelli, president and chief executive officer, Verona Pharma.
“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. This agreement will enable the strong launch trajectory of this important medicine and provide value to Verona Pharma shareholders.”
New Jersey-based Merck is looking for new avenues to shore up its revenue after its blockbuster drug Keytruda’s patent is slated to expire in 2008.
In April 2023, Merck acquired Prometheus Biosciences for about 10.8 billion to shore up its immunology portfolio. In April 2025, Merck KGaA, acquired biopharmaceutical company SpringWorks Therapeutics Inc. for $3.9 billion in cash to add rare tumour therapies to its portfolio.
