Merck & Co – known as MSD outside of the US and Canada – has announced that it will be expanding its respiratory diseases capabilities by acquiring Verona Pharma for approximately $10bn.
The deal will give Merck access to Ohtuvayre (ensifentrine), an inhaled therapy already approved by the US Food and Drug Administration as a maintenance treatment for adults with chronic obstructive pulmonary disease (COPD).
More than 390 million people worldwide are living with COPD, a progressive respiratory condition that causes restricted airflow and breathing problems.
Despite available treatment options, COPD is the fourth leading cause of death globally, according to the World Health Organization, and approximately half of patients experience almost daily symptoms, including increased shortness of breath, frequent coughing and wheezing.
Ohtuvayre is a selective dual inhibitor of the enzymes phosphodiesterase 3 and phosphodiesterase 4, and combines bronchodilator and non-steroidal anti-inflammatory activities in one molecule.
Among the evidence supporting the FDA’s approval on the drug were results from the late-stage ENHANCE trials, in which Ohtuvayre was associated with clinical benefits as both a monotherapy and when used with other maintenance therapies.
Beyond COPD, the drug is currently in clinical development for non-cystic fibrosis bronchiectasis.
Merck’s chief executive officer, Robert Davis, said: “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.
“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.”
Under the terms of the agreement, expected to close in the fourth quarter of this year, Merck will acquire Verona Pharma for $107 per American Depository Share.
David Zaccardelli, president and chief executive officer of Verona, said: “We believe Merck’s commercial footprint and… 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 provides value to Verona Pharma shareholders.”