- In a move to free up a cash windfall and streamline the business, Merck & Co Inc MRK had long planned to slice away its women’s health business into a standalone spinoff.
- As of Thursday, that spinoff, dubbed Organon, is now a public entity all its own. Organon & Co. OGN debuted on the NYSE.
- As a part of the spinoff, Merck will receive a $9 billion special tax-free dividend that it will use for a future acquisition.
- Organon is focused on Nexplanon, a long-active reversible contraceptive that has a patent expiring in 2027.
- Last year, its sales were around $680 million. The company said it could boost sales to more than $1 billion in 2021.
- Price Action: MRK shares are down 3.3% at $73.36, while OGN is down 4.6% at $33.63 during the market session on the last check Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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