REG - RTW Biotech Opp. - Merck to acquire Verona Pharma

RTW Biotech OpportunitiesAnnouncement

10/07/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250710:nRSJ4492Qa&default-theme=true

RNS Number : 4492Q  RTW Biotech Opportunities Ltd  10 July 2025

LEI: 549300Q7EXQQH6KF7Z84

10 July 2025

RTW Biotech Opportunities Ltd

Merck to acquire Verona Pharma

 

RTW Biotech Opportunities Ltd (the "Company"), the London Stock
Exchange-listed investment company focused on identifying transformative
assets with high growth potential across the life sciences sector, is pleased
to note the announcement by Merck that it has entered into a definitive
agreement to acquire UK-based public portfolio company Verona Pharma Plc
("Verona", NASDAQ: VRNA) for $107 cash per American Depositary Share, for a
total transaction value of approximately $10 billion. The transaction is
subject to Verona shareholder and regulatory approvals and is expected to
close in the fourth quarter of 2025.

 

The acquisition price represents a premium of 23% to Verona's closing share
price on 8 July, prior to the announcement. As of close on 8 July, the
Company's investment in Verona was valued at $8.6 million. As of 31 May 2025,
Verona represented 1.4% of the Company's NAV. This transaction is Merck's
largest acquisition since its 2023 purchase of Prometheus Biosciences for
$10.8 billion, at the time the Company's largest portfolio holding and the
biggest contributor to NAV in 2023.

 

Verona is a UK-based biopharmaceutical company focused on developing and
commercialising treatments for chronic respiratory diseases. Notably, this
acquisition would add Verona's Ohtuvayre to Merck's portfolio of chronic lung
disease treatments. Ohtuvayre is a first-in-class inhalable, non-steroid
maintenance treatment for patients with chronic obstructive pulmonary disease
(COPD), a disease that affects nearly 16 million Americans alone.

 

Rod Wong, CIO of RTW Investments, said, "Merck's acquisition of Verona,
following its 2023 purchase of Prometheus, is a powerful validation of our
long-held thesis: that small and midcap biotech companies represent fertile
ground for transformative innovation, and that large pharma must increasingly
look to these emerging players to replenish and diversify their pipelines.
We're proud to have invested in both companies and see this as further
evidence of the compelling M&A opportunity landscape in biotech. We are
confident that Merck's commercial capabilities will accelerate the reach and
impact of Ohtuvayre, bringing relief to patients suffering from COPD, a
condition with high unmet need. This acquisition aligns with our commitment to
supporting groundbreaking advancements in healthcare and delivering value to
our shareholders."

 

Merck's announcement can be found here
(https://www.businesswire.com/news/home/20250708346048/en/Merck-to-Acquire-Verona-Pharma-Expanding-its-Portfolio-to-Include-Ohtuvayre-ensifentrine-a-First-In-Class-COPD-Maintenance-Treatment-for-Adults-and-Expected-to-Drive-Growth-into-the-Next-Decade)
.

 

Enquiries:

 RTW Investments, LP - Investment Manager  +44 (0)20 7959 6362

 Oliver Kenyon                             biotechopportunities@rtwfunds.com

 Woody Stileman

 Krisha McCune (Investor Relations)

 Cadarn Capital - PR & IR Partner

 Lucy Clark (PR)                           +44 (0)7984 184 461 / lucy@cadarncapital.com

 David Harris (Distribution)               +44 (0)7368 883 211 / david@cadarncapital.com

 Deutsche Numis - Joint Corporate Broker   +44 (0)20 7260 1000

 Freddie Barnfield

 Nathan Brown

 BofA Securities - Joint Corporate Broker  +44 (0)20 7628 1000

 Edward Peel

 Alex Penney

 Altum (Guernsey) Limited                  +44 (0)1481 703 100

 Joanna Duquemin Nicolle

 Sadie Morrison

 

About RTW Biotech Opportunities Ltd:

RTW Biotech Opportunities Ltd (LSE: RTW) is an investment fund focused on
identifying transformative assets with high growth potential across the
biopharmaceutical and medical technology sectors. Driven by a long-term
approach to support innovative businesses, RTW Biotech Opportunities Ltd
invests in companies developing next-generation therapies and technologies
that can significantly improve patients' lives. RTW Biotech Opportunities Ltd
is managed by RTW Investments, LP, a leading healthcare-focused
entrepreneurial investment firm with deep scientific expertise and a strong
track record of supporting companies developing life-changing therapies.

Visit the website at www.rtwfunds.com/rtw-biotech-opportunities-ltd
(https://www.rtwfunds.com/rtw-biotech-opportunities-ltd/)  for more
information.

 

***********

The information in this announcement may include forward-looking statements,
which are based on the current expectations and projections about future
events, and in certain cases can be identified by the use of terms such as
"may", "will", "should", "expect", "anticipate", "project", "estimate",
"intend", "continue", "target", "believe" (or the negatives thereon) or other
variations thereon or comparable terminology. These forward-looking
statements, as well as those included in any related materials, are subject to
risks, uncertainties and assumptions about the Company and/or its underlying
investments, including, among other things, the development of the applicable
entity's business, trends in its operating industry, expected use of financing
proceeds and future capital expenditures and acquisitions. In light of these
risks, uncertainties and assumptions, the events in the forward-looking
statements may not occur.

The information contained in this announcement is given at the date of its
publication (unless otherwise marked). No reliance may be placed for any
purpose whatsoever on the information or opinions contained in this
announcement or on its completeness, accuracy or fairness.

***********

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ACQDBGDRSGGDGUC