In a move to free up a cash windfall and streamline the business, Merck & Co Inc (NYSE: MRK) had long planned to slice away its women’s health business into a standalone spinoff.
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.
See more from Benzinga
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.