Forendo Pharma

Forendo Pharma is a clinical stage drug company focused on treating women's health.

History

2021: Organon bought Forendo Pharma for $954 million

In mid-November 2021, the Finnish manufacturer of women's health drugs Organon entered into a deal to acquire Forendo Pharma for about $954 million. The acquisition transaction is expected to close in December 2021, subject to certain approvals from regulators.

Forendo Pharma has the main study drug FOR-6219, which is in phase 2 clinical development in November 15, 2021, has the potential to act locally in target tissues without affecting systemic hormone levels. This factor gives it an advantage over existing treatments, making it a potential long-term treatment option for endometriosis. In addition, the Forendo Pharma program includes a preclinical program aimed at treating polycystic ovary syndrome (PCA). SPJ is one of the most common women's health issues and as of November 2021 does not have approved treatments, opening up another possibility for Organon.

Organon acquired Forendo Pharma for $954 million

With the acquisition of Forendo Pharma, Organon will be able to create an expanded portfolio of candidates for new treatments in the field of women's health with unmet medical needs. According to the terms of the transaction, Organon will pay $75 million in advance payment and will take over $9 million in debt from Forendo Pharma. As noted, Forendo Pharma is entitled to additional payments of up to $270 million, provided that certain stages of development and regulatory indicators are achieved, as well as payments for commercial stages in the amount of up to $600 million.

Organon is developing medically important health interventions for women, identifying priority areas of disease in response to their unmet needs. Endometriosis is among our top priority areas. The disease itself occurs when the laying and formation of endometrioid tissue from the remains of paramesonephral ducts or from displaced areas of germ material is disturbed. Retrograde menstruation. The bottom line is that endometrial elements are embedded in other organ tissues and implanted activating the development of pathology, said Organon CEO Kevin Ali.

The disease of endometrioid tissue itself is benign, but leads to impaired reproductive function of women, abundant and painful menstruation, anemia, chronic pelvic pain syndrome. Could potentially go into oncology. There are also risks of complications during treatment. According to research data, one in three gynecological diseases, excluding inflammatory diseases and myomas, in a woman is endometriosis or a pathological process caused by the disease.

Forendo Pharma CEO Risto Lammintausta stressed that this is a great opportunity for the company to join forces with a larger organization capable of accelerating the development of innovative candidates for drugs in the middle and late stages of trials and, after approval, make the resulting drugs available to patients suffering from endometriosis and PCA worldwide. Organon's average price benchmark is $39, which suggests a growth potential of 12.8% compared to the current level.^[1]

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