Merck (NYSE: MRK) announced today that it entered into an agreement for its spinoff Organon to acquire Alydia Health for up to $240 million.
Alydia Health develops treatments focusing on preventing maternal morbidity and mortality caused by postpartum hemorrhage (PPH) or abnormal postpartum uterine bleeding, according to a news release. The company develops the Jada system for controlling and treating abnormal postpartum uterine bleeding or hemorrhage when conservative management is warranted.
The deal is slated to close after Organon has successfully spun off from Merck as a standalone, publicly-traded company, a move expected to be completed late in the second quarter of 2021.
Organon’s agreement to acquire Alydia Health includes up to $240 million total consideration, with $215 million being spent upfront, plus a $25 million contingent milestone payment. Of the upfront payment, $50 million will be paid before Organon’s spinoff, with the remaining $165 million to be paid upon the acquisition’s close.
“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,” Organon CEO Kevin Ali said in the release. “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 the 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.”
“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,” added Alydia CEO Rob Binney. “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.”