Schering-Plough Corp. will acquire Organon BioSciences N.V., the human and animal health care businesses of Akzo Nobel N.V., for approximately $14.4 billion in cash. The transaction is expected to close by the end of 2007. "With this transaction we take another major step in our action agenda to transform SP into a global high-performance company for the long term," said Fred Hassan, SP's chairman and chief executive officer. "It is the right deal at the right time as we accelerate into the build the base phase of our transformation."
"Organon BioSciences will be an excellent fit with SP, strategically, scientifically and financially," said Mr. Hassan. "It builds on our growing strength in primary care, giving us immediate access to central nervous system (CNS) and women's health care products. The acquisition of Organon BioSciences also fills a gap in our late-stage pipeline by adding five compounds in Phase III development and a number of promising projects in Phase II development. And, we believe that the two cultures are very much in tune."
He added, "In addition, the acquisition of Organon BioSciences enhances Schering-Plough's strength in human and animal biologic products, including the potential to develop human vaccines. In light of SP's expanding early pipeline, Organon BioSciences's strong biologics manufacturing capability is a further important asset for the combined company. With this acquisition, SP will become a leading animal health care company, with premier biologics capabilities."
The pharmaceutical business, Organon, had sales of $3.4 billion in 2006, which includes lead products such as Follistim/Puregon, a follicle-stimulating hormone for infertility; Esmeron/Zemuron, a muscle relaxant; and NuvaRing and Implanon for contraception. The animal health business had sales of $1.5 billion in 2006.
Schering-Plough To Acquire Organon BioSciences
Published March 12, 2007
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