US pharmaceutical company Merck & Co Inc (NYSE:MRK), known as MSD outside the US and Canada, announced on Tuesday that it has completed the acquisition of Verona Pharma plc (Nasdaq:VRNA).

Verona is now a wholly owned subsidiary of Merck its American Depositary Shares will no longer be listed or traded on the Nasdaq Global Market.

The transaction, valued at approximately USD10bn, involved a purchase price of USD107 per ADS, each representing eight ordinary Verona Pharma shares.

This acquisition adds Ohtuvayre (ensifentrine) to Merck's cardio-pulmonary portfolio. Ohtuvayre, approved by the US FDA in June 2024, is a first-in-class inhaled dual inhibitor of phosphodiesterase 3 and 4 for the maintenance treatment of chronic obstructive pulmonary disease (COPD) in adults. It combines bronchodilator and non-steroidal anti-inflammatory effects and is also being evaluated for non-cystic fibrosis bronchiectasis.

Merck said that the acquisition will result in the capitalisation of most of the purchase price as an intangible asset for Ohtuvayre (which will be amortised as a GAAP-only charge over the life of the product). The transaction is expected to negatively impact non-GAAP EPS by approximately USD0.16 in the first 12 months, representing costs associated with financing the transaction partially offset by Ohtuvayre performance.