MSD’s spinoff Organon to acquire medical device company for $240M

Pharma News: MSD (known as Merck in United States and Canada) has entered a definitive agreement in which its intended spinoff Organon will acquire the commercial-stage medical device company Alydia Health for a total of up to $240 million.

Alydia Health is a commercial-stage medical device company focused on preventing maternal morbidity and mortality caused by postpartum haemorrhage (PPH) or abnormal postpartum uterine bleeding. PPH is one of the most common complications of birth, resulting in pharmacologic treatment in up to 10% of mothers and potentially resulting in emergency intervention such as hysterectomy and blood transfusions, and, in some cases, maternal death.

The transaction is expected to close after Organon has spun off from MSD as a standalone publicly traded company late in the second quarter of this year.

“The acquisition aligns with Organon’s strategy to become a global leader in women’s health by focusing our product development on her unmet medical needs,” said Kevin Ali, CEO of Organon.

“We believe that Organon’s strong global commercial footprint in reproductive health, in conjunction with Alydia’s rapidly growing commercial capabilities, 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,” he added.

“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 Rob Binney, CEO of Alydia Health.

“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,” he said.

The Jada System is intended to provide control and treatment of abnormal postpartum uterine bleeding or haemorrhage when conservative management is warranted. The safety and effectiveness of the Jada System was evaluated in the PEARLE study, a prospective, single-arm, clinical trial, under an approved investigational device exemption from the U.S. Food and Drug Administration (FDA).