US Pharma Giant Merck Acquires British Biotech Verona in $10 Billion Dollar Deal

In a landmark transaction, US pharmaceutical behemoth Merck has secured the acquisition of London-based Verona Pharma for approximately $10 billion, marking a significant milestone in the biotech sector. The deal crystallises substantial returns for the company’s directors and highlights the ongoing trend of British healthcare innovations finding their ultimate home across the Atlantic.

Verona Pharma, which originated from academic research at King’s College London, has developed Ohtuvayre, a groundbreaking treatment for chronic obstructive pulmonary disease (COPD). The company’s journey from its humble beginnings on London’s Alternative Investment Market (AIM) in 2006 to its current status as a Nasdaq-listed enterprise reflects the challenging landscape for British biotech firms seeking substantial funding.

The acquisition comes at a crucial time as Ohtuvayre, approved by the US Food and Drug Administration in June 2024, demonstrates promising market performance. David Zaccardelli, Verona’s chief executive, reports rapid uptake in the US market since its launch in August 2024, validating the drug’s potential as the first novel inhaled COPD treatment in two decades.

The deal has generated significant wealth for key figures within the organisation. David Ebsworth, the non-executive chairman since 2014, stands to receive approximately $158 million from his shareholding. Martin Edwards, a non-executive director since 2019, will benefit from shares valued at around $80 million.

This transaction occurs against the backdrop of ongoing discussions about Britain’s ability to retain its homegrown technology companies. The government’s industrial strategy aims to support domestic scaling of British technology firms, yet the allure of US capital markets and funding opportunities continues to draw promising companies across the Atlantic.

Professor Clive Page, a co-founder and previous chairman of Verona, maintains a positive outlook despite the company’s departure from British ownership, emphasising the rarity and significance of developing a successful first-in-class drug. The sale to Merck, known as MSD outside North America, represents both a triumph for British scientific innovation and a reminder of the challenges facing the UK’s life sciences sector.