Core Viewpoint - Merck & Co. Inc. is acquiring Verona Pharma plc for approximately $10 billion, adding Ohtuvayre, a novel treatment for chronic obstructive pulmonary disease (COPD), to its portfolio [1][2][4] Group 1: Acquisition Details - The acquisition price is set at $107 per American Depository Share (ADS), with each ADS representing eight ordinary shares of Verona Pharma [1] - The transaction is expected to close in the fourth quarter of 2025, with most of the purchase price capitalized as an intangible asset for Ohtuvayre [3] Group 2: Product Information - Ohtuvayre, approved by the U.S. FDA in June 2024, is the first new inhaled mechanism for COPD in over 20 years, combining bronchodilator and non-steroidal anti-inflammatory effects [2] - Ohtuvayre is also under evaluation in clinical trials for non-cystic fibrosis bronchiectasis [2] Group 3: Industry Context - The acquisition reflects a trend of large pharmaceutical companies acquiring biotech firms with approved, revenue-generating products to replace revenue from drugs losing patent protection [4] - Merck's Keytruda, the top-selling drug globally with nearly $30 billion in annual revenue, is expected to face patent expiration and U.S. government price-setting rules by 2028 [4] Group 4: Merck's Acquisition Strategy - Since Rob Davis became CEO in April 2021, Merck has been highly active in acquisitions and licensing, with the highest deal count and spending in the pharmaceutical industry [5] - Investors are urging Merck to pursue more deals to offset anticipated sales declines following Keytruda's patent expiration, with Davis seeking deals worth between $1 billion and $15 billion [5] Group 5: Market Reaction - Following the announcement, Verona Pharma's stock rose by 20.7% to $104.83, while Merck's stock increased by 0.50% to $81.78 during premarket trading [6]

Summary of Merck and Company Investor Event on Acquisition of Verona Pharma Company and Industry - **Company**: Merck and Company Incorporated - **Acquisition Target**: Verona Pharma Public Limited Company - **Industry**: Pharmaceuticals, specifically focusing on treatments for Chronic Obstructive Pulmonary Disease (COPD) Core Points and Arguments 1. **Acquisition Announcement**: Merck announced the acquisition of Verona Pharma, highlighting the strategic importance of this move in enhancing its portfolio in the cardiopulmonary space [1][2][7] 2. **O2Ver Product Introduction**: Verona's O2Ver is noted as the first novel mechanism for inhaled maintenance treatment of COPD in over twenty years, launched successfully in 2024 with rapid market uptake [8][9][12] 3. **Market Potential**: O2Ver is expected to achieve multibillion-dollar peak commercial potential, contributing to both short-term and long-term revenue growth for Merck [9][29] 4. **COPD Unmet Need**: COPD is the fourth leading cause of global mortality, with significant unmet medical needs, as many patients remain symptomatic despite existing treatments [12][20] 5. **Clinical Validation**: O2Ver demonstrated strong clinical efficacy in phase three trials, showing significant improvements in lung function and a positive safety profile [14][15][19] 6. **Market Opportunity**: In the U.S., approximately 15 million people are diagnosed with COPD, with a significant portion remaining symptomatic, indicating a large market opportunity for O2Ver [23][24] 7. **Sales Performance**: O2Ver generated approximately $114 million in sales within its first eight months, with a notable increase in new patient starts and total prescriptions [24][25] 8. **Financial Position**: Merck is in a strong financial position to complete the acquisition, with a total transaction value of approximately $10 billion, financed through cash, commercial paper, and new debt issuance [29][30] 9. **Future Growth Strategy**: Merck aims to leverage Verona's capabilities to expand its cardiopulmonary commercial footprint and explore additional indications for O2Ver, including non-cystic fibrosis bronchiectasis [16][18][26] Additional Important Content 1. **Regulatory Considerations**: The acquisition is subject to Verona shareholder approval and regulatory approvals, with expectations for closure in the fourth quarter of the year [30] 2. **Long-term Vision**: Merck emphasizes a commitment to advancing its internal pipeline while supplementing it with external innovations like the acquisition of Verona [10][31] 3. **Market Dynamics**: The COPD therapy market is projected to grow from approximately $17 billion to $27 billion by 2032, highlighting the potential for O2Ver to capture significant market share [27][55] 4. **Patient Compliance**: The delivery method of O2Ver via nebulizer is designed to be straightforward, with expectations for good patient compliance due to the relief it provides [66][70] 5. **Competitive Landscape**: Merck acknowledges the competitive landscape but believes O2Ver's unique dual mechanism of action positions it favorably against existing treatments [111][114] This summary encapsulates the key points discussed during the investor event regarding Merck's acquisition of Verona Pharma and the strategic implications for both companies in the COPD treatment market.

Acquisition Overview - Merck将以每ADS 107美元的价格收购Verona Pharma的所有已发行股份[14,47]，总交易价值约为100亿美元[14,47]（约98亿美元扣除约2亿美元的现金、投资和债务[47]），预计将于2025年第四季度完成[14,47] - 这项以科学为驱动的业务发展[14]，加强并补充了心肺产品组合[14] - Ohtuvayre®是20多年来的首个新型吸入性COPD维持治疗药物[14]，这是一个巨大的疾病领域，存在着显著未被满足的医疗需求[14] Ohtuvayre® Clinical Data - Ohtuvayre®是一种磷酸二酯酶3（PDE3）和磷酸二酯酶4（PDE4）的双重抑制剂[24]，是20多年来首个用于COPD维持治疗的新型吸入机制[24] - 在两项3期试验中，Ohtuvayre®在肺功能方面表现出具有临床意义的改善，平均FEV1 AUC0-12h从基线相比安慰剂显著改善+87 mL和+94 mL[25,27] - 汇总数据显示，在ENHANCE-1和ENHANCE-2研究中，Ohtuvayre®降低了24周内的年度中度或重度加重率[28,29]，ENHANCE-2研究中，Ensifentrine 3 mg组的年度事件率为0.24，安慰剂组为0.42[29]，风险比为0.57[29]，降低了43%[29] Commercial Opportunity - 美国约有860万接受维持治疗的COPD患者[35,40]，其中约50%仍然持续有症状[36,40]，针对持续有症状的患者是启动重点[40]，人数约为430万[40] - 2025年第一季度，处方量约为25000张[42]，约60%的处方是续方[42]，自上市以来约有5300名处方医生[42]，相比2024年第四季度，处方医生增加了约50%[42] - Ohtuvayre®代表着到2030年代中期的一个数十亿美元的商业机会[14,43] Financial Impact - 预计该交易将在最初的12个月内对非GAAP每股收益产生约0.16美元的负面影响[47]，这代表着与为交易融资相关的成本，部分被Ohtuvayre®的业绩所抵消[47]，预计将在2027年实现非GAAP每股收益的增厚[47]，并在2028年全年实现增厚[47]

Group 1 - Merck has agreed to acquire UK-based Verona Pharma for approximately $10 billion to diversify its revenue sources amid the impending patent expiration of its best-selling cancer drug, Keytruda [1][5] - Keytruda generated nearly $30 billion in sales last year, accounting for almost half of Merck's total revenue [1][4] - The acquisition price of $107 per share represents a 23% premium over Verona's closing price prior to the announcement, and both companies' boards have approved the transaction [1][6] Group 2 - Verona Pharma's core product, Ohtuvayre, was approved in the US last year for the treatment of chronic obstructive pulmonary disease (COPD) and is considered the first innovative inhalation mechanism drug for COPD in over 20 years [5][6] - Analysts expect Ohtuvayre's peak annual sales to reach at least $1 billion, with some forecasts suggesting it could exceed $4 billion [5] - The COPD market is experiencing renewed interest, with other pharmaceutical companies like Sanofi and GSK also launching new drugs [5]

Joining us now to discuss the impact to pharma stocks is Evan Seagerman, Beimo, senior biioarma analyst. Evan, great to have you with us. Um, first I wanted to get your thoughts on the deal that was just announced within the past half hour.Breaking news. Breaking news for sure. Merc shares are higher.Uh, and we knew that it faced the patent cliff for Katruda in 2028. Right. So, one of the things I've always been saying with Merc and kind of the reason of my downgrade back in December was they had this huge ...

Acquisition - Merck & Co agrees to acquire Verona Pharma for approximately $10 billion [1] Strategic Rationale - The acquisition aims to mitigate the anticipated patent expiration of Merck's best-selling cancer drug [1]

默克公司同意以每股107美元的价格收购 维罗纳制药公司。据悉，此次收购对维罗纳的估值约为100亿 美元。 ...

默沙东同意以107美元/ADS的价格收购维Verona。（彭博） ...

默克公司同意以每股107美元的价格收购维罗纳制药（Verona ）。 ...

默克：收购维罗纳制药总交易价值约为100亿美元。 ...