Women’s health company Organon is selling off its postpartum uterine bleeding or hemorrhage system to Laborie Medical Technologies in a deal worth up to $465 million.
Organon first gained access to the Jada System, which uses a vacuum to induce physiologic contraction of the uterus, from its buyout of Alydia Health in 2021, the year the company debuted as independent spinoff from Big Pharma Merck.
Now, four years down the line, the company is looking to sell rather than buy. Friday, Organon said it is divesting the business unit as it seeks to reduce its debt and continue its “deleveraging efforts.”
Under the terms of the agreement, Laborie will pay $440 million at closing and up to $25 million based on the unit's 2026 revenue performance.
Laborie will also gain about 100 Organon employees who worked on Jada from the deal. The medtech sells several products including Optilume BPH, a catheter system for benign prostatic hyperplasia, and LifeBubble, an umbilical catheter securement system.
Jada sales grew 40% (outside of foreign exchange fluctuations) to hit $61 million in revenue for full-year 2024. Organon’s third-quarter results are expected next week.
“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," Organon interim CEO Joseph Morrissey said in a release.
"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," Morrissey added.
Organon has endured a tough year. Sales of its vaginal ring NuvaRing, which is marketed to prevent pregnancy, have been decimated by generic competition, while Organon’s fertility business has also seen sales drop.
Back in July, a drug candidate the company hailed as perhaps its “biggest potential opportunity” flunked a phase 2 trial, prompting the company to end clinical development of the endometriosis prospect.
And, just two weeks ago, Organon said it was parting ways with its first CEO Kevin Ali after an internal probe turned up evidence of suspect sales practices. It also fired its head of U.S. commercial and government affairs.