Organon Completes Acquisition of Alydia Health - A Medical Device Company Focused on Postpartum Hemorrhage
JERSEY CITY, N.J.--(Business Wire / Korea Newswire) June 17, 2021 -- Organon (NYSE: OGN), a global women’s healthcare company, today announced the completion of its acquisition of Alydia Health, a commercial-stage medical device company focused on preventing maternal morbidity and mortality caused by postpartum hemorrhage (PPH) or abnormal postpartum uterine bleeding.
Postpartum hemorrhage is one of the most common complications of birth, requiring pharmacologic treatment in up to 10% of mothers and potentially resulting in emergency intervention such as hysterectomy and blood transfusions. In the worst cases, PPH may lead to maternal death.[i] Worldwide, 40,510 women died due to PPH in 2016.[ii]
“Organon’s acquisition of Alydia Health expands our portfolio into the medical device category and underscores our commitment to identify options for women’s unmet medical needs. This acquisition brings us one step closer to our vision of a better and healthier every day for every woman around the world,” said Kevin Ali, Chief Executive Officer, Organon.
On June 3, 2021, Organon launched as a new company committed to women’s everyday health needs, with a focus on reproductive health, health issues that affect women as well as conditions that disproportionately affect women.
“Alydia Health is thrilled to be joining a company that can help progress our founding vision through its commitment to listen to women, to understand her health needs and to bring forward more options,” said Rob Binney, Chief Executive Officer, Alydia Health.
“With our global commercial footprint in reproductive health and experience creating affordable access in the world’s least developed markets, we will look for ways to bring the Jada System to more women around the world,” said Susanne Fiedler, Chief Commercial Officer, Organon.
Organon agreed to acquire Alydia Health in March 2021. Total consideration was $240 million, including a $215 million cash payment ($50 million of which was paid by Merck, known as MSD outside the U.S. and Canada, upon signing in March 2021, and $165 million paid by Organon at close) plus a $25 million contingent milestone payment.
About Alydia Health
Founded in 2010 with a vision to make childbirth safer for all mothers, Alydia Health is a commercial-stage medical device company focused on preventing maternal morbidity and mortality caused by postpartum hemorrhage (PPH) or abnormal postpartum uterine bleeding - a challenging condition to manage and a growing problem in the U.S. and globally.
Alydia’s device, the Jada® System, is designed to encourage normal contraction of the uterus to stop excessive bleeding after childbirth. Alydia received 510(k) clearance (marketing authorization) from the FDA for the Jada® System in August 2020 based on results from the company’s pivotal PEARLE IDE Study.
Organon (NYSE: OGN) is a global healthcare company formed through a spinoff from Merck, known as MSD outside of the United States and Canada, to focus on improving the health of women throughout their lives. Here for her health, the company has a portfolio of more than 60 medicines and products across a range of therapeutic areas. Led by the reproductive health portfolio coupled with an expanding biosimilars business and stable franchise of established medicines, Organon’s products produce strong cash flows that will support investments in future growth opportunities in women’s health, including business development. In addition, Organon is pursuing opportunities to collaborate with biopharmaceutical innovators looking to commercialize their products by leveraging its scale and presence in fast growing international markets.
Organon has a global footprint with significant scale and geographic reach, world-class commercial capabilities, and approximately 9,000 employees with headquarters located in Jersey City, New Jersey.
For more information, visit www.organon.com and connect with us on LinkedIn and Instagram and at HereForHerHealth.com.
Forward-Looking Statement of Organon & Co., Jersey City, N.J., USA
This news release of Organon & Co. (the “company”) may include “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 regarding, among other things, statements relating to the company’s goals, plans and projections regarding the company’s financial position and results of operations. Forward-looking statements may be identified by words such as “expects,” “intends,” “anticipates,” “plans,” “believes,” “seeks,” “estimates,” “will” or words of similar meaning. These statements are based upon the current beliefs and expectations of the company’s management and are subject to significant risks and uncertainties. If underlying assumptions prove inaccurate or risks or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statements.
Risks and uncertainties include but are not limited to, general industry conditions and competition; general economic factors, including interest rate and currency exchange rate fluctuations; the impact of the recent global outbreak of novel coronavirus disease (COVID-19); the impact of pharmaceutical industry regulation and health care legislation in the United States and internationally; global trends toward health care cost containment; technological advances, new products and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approval; the retention of Alydia Health employees and the company’s ability to successfully integrate the Alydia Health business; risks inherent in the achievement of anticipated synergies and the timing thereof; the company’s ability to accurately predict future market conditions; manufacturing difficulties or delays; financial instability of international economies and sovereign risk; dependence on the effectiveness of the company’s patents and other protections for innovative products; and the exposure to litigation, including patent litigation, and/or regulatory actions.
The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by any applicable securities laws. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the company’s filings with the Securities and Exchange Commission (SEC), including its registration statement on Form 10, available at the SEC’s Internet site (www.sec.gov).
[i] Widmer M et al. “Heat-Stable Carbetocin versus Oxytocin to Prevent Hemorrhage after Vaginal Birth.” N Engl J Med 2018; 379:743-752.
[ii] Roser M, Ritchie H. Maternal mortality. Our World in Data. https://ourworldindata.org/maternal-mortality. Published November 12, 2013. Accessed August 19, 2020.
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Organon & Co.
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