MSD acquires Verona Pharma in a $10 billion deal

MSD acquires Verona Pharma in a strategic deal to expand its presence in the treatment of respiratory diseases

The pharmaceutical company MSD (Merck & Co., Inc. in the US and Canada) has announced the acquisition of the British biopharmaceutical company Verona Pharma. The value of the deal amounts to approximately $10 billion. This acquisition aligns with MSD’s long-term strategy to expand its innovation portfolio and not only strengthens its position in the field of respiratory diseases, but also comes amid anticipated challenges related to the expiration of patent protection for leading products in the coming years.

MSD to add Ohtuvayre to its portfolio – the first-in-class selective dual inhibitor of phosphodiesterase 3 and 4

The definitive agreement reached will allow MSD to add Ohtuvayre (ensifentrine) to its portfolio. The drug is a first-in-class selective dual inhibitor of phosphodiesterase 3 and 4 (PDE3 and PDE4). It is indicated for the treatment of chronic obstructive pulmonary disease (COPD). The drug was approved by the U.S. Food and Drug Administration (FDA) in June 2024 and is currently already in use in the US for the maintenance treatment of COPD in adult patients.

Developed as an inhaled therapy with a novel mechanism of action, Ohtuvayre combines bronchodilatory and non-steroidal anti-inflammatory effects, distinguishing it from existing therapies. Its delivery via nebulizer makes it suitable for patients with reduced inspiratory capacity. Furthermore, the product is being evaluated in clinical trials for use in non-cystic fibrosis bronchiectasis—an area for which there are currently limited therapeutic options.

According to analyst estimates, Ohtuvayre has the potential to reach peak annual sales of $3 to $4 billion globally. In the first quarter of 2025, US sales of the drug amounted to $71.3 million—nearly double the revenue for the entirety of 2024.

The merger opens new perspectives

From Verona Pharma’s perspective, the deal is seen as an opportunity to accelerate international access to the innovative therapy, thanks to MSD’s extensive commercial reach and expertise in respiratory medicine. The merger also opens new perspectives for expanding the clinical program for ensifentrine and entering additional indications.

The deal is expected to close in the fourth quarter of 2025, following the fulfillment of standard regulatory and shareholder requirements.