Merck has completed the spinoff of Organon & Co., a women’s health company headquartered in Jersey City, it announced Thursday.
The Kenilworth-based drugmaker said in a news release that its goal was to create two patient-focused companies with enhanced strategic and operational focus, simplified operating structures and improved financial profiles.
“Today marks a significant milestone for both Merck and Organon,” Merck President Rob Davis said in a prepared statement. “Organon is now an independent, publicly traded company with a broad portfolio of important medicines and products, and is fully prepared to deliver sustainable growth and value.”
Organon has a majority-female leadership team and board of directors and approximately 9,000 employees in its global offices, including the one in Jersey City, it said in a news release. The company said it will serve more than 140 countries, with nearly 80% of its expected $6.5 billion in annual revenue generated outside the U.S.
“At Organon, we are here for her health,” CEO Kevin Ali said in a statement. “Our vision is to create a better and healthier everyday for every woman around the world. There is no other health care company with our global footprint dedicated to putting women at the center that will focus on identifying medicines and solutions that they so urgently need.”
Merck said it received a distribution of approximately $9 billion in connection with the spinoff, and hopes to achieve operating efficiencies of approximately $1.5 billion over three years.
