Organon, a global health care company headquartered in Jersey City, announced Jan. 28 that it closed the sale of its JADA system to Laborie Medical Technologies Corp.
Organon said Nov. 7 that it agreed to sell its JADA system to Laborie Medical Technologies Corp., a Portsmouth, N.H.-based diagnostic and therapeutic medical technology company, for $465 million.
JADA is a medical device that uses a low-level intrauterine vacuum to control and treat abnormal postpartum uterine bleeding or hemorrhage. Postpartum hemorrhage is one of the most common complications of birth. In the worst cases, PPH may lead to maternal death. Worldwide, 40,510 women died because of PPH in 2016.
The transaction is composed of $440 million to be paid at closing, subject to certain closing adjustments, and a potential payment of up to $25 million subject to the achievement of certain 2026 revenue targets. About 100 employees are expected to transfer to Laborie as part of the agreement. Laborie was founded in 1967 by Ray Laborie, a pioneer in urodynamics.
“I am incredibly proud of the work the JADA team and Organon have done to help more than 136,000 new mothers in over 20 countries, positioning JADA as a recognized standard of care in postpartum hemorrhage (PPH) management,” said Organon Interim Chief Executive Officer Joseph Morrissey in November.
“This transaction puts JADA in the hands of Laborie, a leading medical technology innovator with an established history in maternal health, that is well-positioned to further expand access to JADA for the benefit of mothers globally. It is also another step towards improving capacity in Organon’s balance sheet to be able to pursue other growth opportunities in women’s health biopharma in the future.”
Net proceeds from the transaction will be applied to debt reduction as part of Organon’s deleveraging efforts.
Organon acquired JADA in June 2021 from its buyout of Alydia Health in 2021. JADA sales increased 40% (outside of foreign exchange fluctuations) to hit $61 million in revenue for full-year 2024, according to the website fiercebiotech.com. The company said the total transaction value of up to $465 million represents 6.5x JADA’s trailing 12-months revenue.
The transaction has been approved by the board of directors of the company.
Goldman Sachs & Co. LLC is acting as financial adviser to Organon.
Since Nov. 7 when Organon announced the deal, the company’s shares have risen 32% to $8.93 from $6.78. Organon has a market cap of $2.32 billion and trades on the New York Stock Exchange.
