After Merck’s intended spinoff of Organon, Organon will acquire medical device company Alydia Health for up to $240 million, the companies announced March 30.
The transaction is expected to close after Organon has spun off from Merck as a standalone publicly-traded company.
Alydia Health focuses on preventing maternal morbidity and mortality caused by postpartum hemorrhage, one of the most common complications of birth, or abnormal postpartum uterine bleeding. PPH requires medical treatment in about one in ten mothers, potentially resulting in emergency intervention and, in some cases, maternal death.
The acquisition aligns with Organon’s strategy to become a global leader in women’s health, Organon CEO Kevin Ali said in a prepared statement on the deal.
“We believe that Organon’s strong global commercial footprint in reproductive health, in conjunction with Alydia’s rapidly growing commercial capabilities in the U.S., will help enable growth of the Jada System, including potential expansion into Europe and other developed countries, as well as in the world’s least developed markets where Organon has significant experience creating affordable access,” Ali said.
The Jada System, by Alydia, is intended to control and treat abnormal postpartum uterine bleeding or hemorrhage by using a gentle vacuum to induce the normal function of the uterus, helping a mother’s body initiate contractions and take back control, according to Alydia’s website.
“Alydia Health is thrilled to join Organon as we hold a similar vision to bring technology and therapeutic solutions to market that can improve outcomes for women in need across the globe,” said Alydia Health CEO Rob Binney in a prepared statement. “Our goal is to help make childbirth safer for more women. With critical gaps in maternal care, we believe this acquisition will potentially accelerate the delivery of the Jada System to more women and communities in need.”
The $240 million pricetag includes $215 million upfront plus a $25 million contingent milestone payment. Fifty million dollars of the upfront payment will be paid prior to the spinoff of Organon; $165 million will be paid by Organon upon the close of the acquisition, and the remainder will be paid by Organon upon achievement of said milestone, according to the announcement.
- Closing will be subject to customary closing conditions and completion of the spinoff of Organon from Merck, currently anticipated late in the second quarter of 2021. Guggenheim Securities represented Alydia Health as financial advisor.
