08:54 AM EDT, 07/09/2025 (MT Newswires) -- Merck ( MRK ) on Wednesday agreed to acquire UK-based biopharmaceutical company Verona Pharma ( VRNA ) in a deal worth roughly $10 billion, as it looks to expand its cardio-pulmonary disease treatment portfolio.

A subsidiary of Merck ( MRK ) will purchase Verona for $107 per American depositary share, with each ADS representing eight ordinary shares of the British respiratory disease-focused firm. Verona's Nasdaq-listed shares jumped 21% in premarket activity, while Merck ( MRK ) edged up 0.6%.

The transaction, which requires approval from Verona's shareholders and UK court clearance, is expected to complete in the fourth quarter.

The deal will give Merck ( MRK ) access to Ohtuvayre, or ensifentrine, Verona's medication for the maintenance treatment of chronic obstructive pulmonary disease in adults, approved by the US Food and Drug Administration in June 2024. The product is also being studied in clinical trials for the treatment of non-cystic fibrosis bronchiectasis.

"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," Merck ( MRK ) Chief Executive Robert Davis said in a statement.

In April, Verona reported sales of $76.3 million for the first quarter, with Ohtuvayre contributing $71.3 million. The company's net loss narrowed to $0.02 a share from $0.04 in the prior-year quarter.

"We believe Merck's ( MRK ) commercial footprint and industry-leading clinical capabilities will help accelerate the potential of Ohtuvayre to reach more patients living with (chronic obstructive pulmonary disease)," Verona CEO David Zaccardelli said. "This agreement will enable the strong launch trajectory of this important medicine and provides value to Verona Pharma ( VRNA ) shareholders."

In 2023, Merck ( MRK ) acquired Prometheus Biosciences in a $10.8 billion deal to boost its immunology portfolio.