Early in March 2020, Merck & Co., Inc. (NYSE: MRK) announced the spin-off of a new company focused on women’s health. The new company, Organon & Co., will have a portfolio of more than 60 trusted medicines that address an entire spectrum of conditions that women face. Organon is expected to have a global footprint with approximately 10,000 employees with headquarters located in Jersey City, New Jersey.
If the name rings any bell at all, it’s because Organon was originally a subsidiary of Schering-Plough Corporation, which Merck acquired in 2009 for a whopping $41 billion. Schering-Plough actually bought Organon in 2007 from Akzo Nobel (OTCMKTS: AZKOY) for $15.8 billion, according to search results in our Healthcare Deals Database.
And now more than a decade later, Organon is becoming its own publicly traded company and has already made some news in the M&A market. Last month, the company announced it was buying Alydia Health, a commercial-stage medical device company focused on preventing maternal morbidity and mortality caused by postpartum hemorrhage or abnormal postpartum uterine bleeding.
The deal is valued at $215 million upfront plus a $25 million contingent milestone payment. The acquisition aligns with Organon’s strategy to become a global leader in women’s health by focusing its product development on unmet medical needs. The transaction is expected to close after Organon has spun off from Merck.
