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.

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

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.

While we acknowledge the potential of VRNA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VRNA and that has 100x upside potential, check out our report about this cheapest AI stock.

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