Here's How Wall Street is Reacting to Verona Pharma (VRNA)'s Acquisition

Verona Pharma plc (NASDAQ:VRNA) is one of the Best Mid Cap Growth Stocks to Buy According to Hedge Funds. On July 9, Verona Pharma plc (NASDAQ:VRNA) announced that it will be acquired by Merck (NYSE:MRK) in a transaction valued at around $10 billion.

Recently, on August 14, H.C. Wainwright analyst Raghuram Selvaraju downgraded Verona Pharma plc (NASDAQ:VRNA) from Buy to Neutral; however, he raised the price target from $90 to $107. The analyst noted the rating is due to Merck acquiring the company for $107 per American Depositary Share, which represents eight Verona Pharma ordinary shares.

The acquisition will give Merck access to Ohtuvayre, a new drug approved by the FDA in June 2024. The CEO of Verona Pharma plc (NASDAQ:VRNA) noted the rapid uptake of Ohtuvayre since its launch in August 2024 in the US and believes Merck’s scale will help reach more patients.

Verona Pharma plc (NASDAQ:VRNA) is a biopharmaceutical company that develops innovative treatments for chronic respiratory diseases. Their first commercial product is Ohtuvayre, which is an inhaled therapy for COPD.

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Disclosure: None. This article is originally published at Insider Monkey.