Organon

History

2021

Purchase of drug manufacturer 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. More details here.

Separation from Merck

In early June 2021, Merck, known as MSD outside the United States and Canada, announced the separation of the manufacturer of women's health drugs Organon & Co. (Organon). In connection with the separation, Merck received about $9 billion from Organon.

Merck's goal was to create two patient-oriented companies, which would ensure stronger strategy, greater flexibility, simplification of operational models, optimization of capital structure and improved financial profile. Merck believes that the deal will bring significant benefits to both Merck and Organon, and will also create additional value for Merck shareholders. The division is expected to allow Merck to focus on key components of the company's development, achieve higher revenue and profit growth rates and provide additional operational efficiency by about $1.5 billion over three years. It is expected that about $500 million will be realized during 2021.

Merck separated the manufacturer of drugs for women's health Organon and earned $9 billion

Organon did not issue fractional shares at the separation. Instead, holders of ordinary Merck shares received cash at the cost of fractional shares of Organon, to which they could be entitled. Later, Organon plans to enter the exchange to trade its own shares.

Today marks an important milestone for both Merck and Organon. Now Organon has become an independent public company with a broad portfolio of important drugs and products that promise to support sustainable growth and development, said Merck President Rob Davis. - Thanks to its leadership position and reliable production chain, Merck also has the possibility of sustained long-term growth, while scientific innovations remain the main source of our income.[1]

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