Organon & Co.

Last updated
Organon & Co.
Company type Public
Industry Pharmaceuticals
PredecessorOrganon International (founded 1923) [1]
Founded2020;4 years ago (2020) [2]
Headquarters 30 Hudson Street,
Jersey City, New Jersey
,
U.S.
Key people
Kevin Ali (CEO)
RevenueIncrease2.svg US$6.26 billion (2023)
Decrease2.svgUS$1.26 billion (2023)
Increase2.svgUS$1.02 billion (2023)
Total assets Increase2.svgUS$12.1 billion (2023)
Total equity Increase Negative.svgUS$−70 million (2023)
Number of employees
c. 10,000 (2023)
Website organon.com
Footnotes /references
[3]

Organon & Co. is an American pharmaceutical company headquartered in Jersey City, New Jersey. [4] Organon specializes in the following core therapeutic fields: reproductive medicine, contraception, psychiatry, hormone replacement therapy (HRT), and anesthesia. Organon produces all its products outside of the United States but gets a third of its revenue from the United States. Organon & Co. is an example of increasing women's representation on Wall Street with over 50% of its board of directors and executive leadership being female. [5]

Contents

History

Organon was founded in 1923 as a partnership between the physiologist/endocrinologist of the University of Amsterdam Prof Ernst Laqueur and Saal van Zwanenberg (1889-1974) [6] who owned an abattoir/slaughterhouse, Zwanenbergs Slachterijen en Fabrieken, in Oss in Northern Brabant. The company's first product was insulin in 1923. [7] In the thirties it manufactured estrogens, in particular estrone under the trade name Menformon. [7]

In 1948, Organon acquired the Newhouse research site in Scotland, United Kingdom. The production of cortisone was initiated in 1953. [8]

In 1962, it bought the stock of the Nederlandsche Cocaïnefabriek. The company name was changed to Koninklijke Zwanenberg-Organon (KZO), and it merged with the fibre producer AKU in 1969 to become AKZO, later Akzo Nobel. Organon was the human health care business unit of Akzo Nobel. In 2004, Organon acquired active-pharmaceutical-ingredient producer Diosynth. [8]

In November 2007, Schering-Plough acquired Organon BioSciences and veterinary pharmaceutical company Intervet from Akzo Nobel. [9] Schering-Plough transferred Organon to its headquarters in New Jersey. [10] Two years later, Schering-Plough merged with Merck & Co., known as Merck Sharp & Dohme or MSD outside the United States and Canada. [11]

In May 2020, Merck & Co. announced that Organon & Co. will be the name of "the pending spin-off of its women’s health, legacy products, and biosimilars businesses, which the company says is on track to be completed by the end of the first half in 2021." [12] Merck completed the spinoff and Organon & Co. became a publicly traded company on 3 June 2021. A copy of the Information Statement sent to Merck shareholders was filed with the U.S. SEC on April 20, 2021, in a Form 10-12B/A, Exhibit 99.1 [13] [14]

In November 2021, the business announced it would acquire Forendo Pharma and its lead compound, a potentially first-in-class oral 17β-hydroxysteroid dehydrogenase type 1 inhibitor. [15] [16]

Products

Their products are divided into three main categories women's health (27% of revenue), biosimilars (8% of revenue), and established brands (64% of revenue). Women's health products are mainly contraceptives such as Nexplanon, a three-year reversible contraceptive implant, and fertility drugs such as Puregon, a follicle-stimulating hormone drug. [5] Biosimilars provide treatment for oncology and immunology at potentially lower cost than other FDA approved treatments. [5] [17] Organon makes the biosimilar Hadlima which it compares to Humira. Their established brands are heavily reliant on sales outside the United States of drugs with generic competition. The cardiovascular products such as Vytorin make a combined 24% of the company revenue. [5] Revenue figures stated with 2022 figures.

Research compounds

During its period of independent operation, Organon developed a large number of compounds which were never adopted for medical use, but continue to be used for a variety of scientific research. Notable compounds include:

Medicaid fraud

In 2007, whistleblower lawsuits were filed against Organon in federal courts in Massachusetts and Texas. Organon was accused of selling its anti-depression medication Remeron at a discount to nursing home pharmacies (in order to encourage use), yet filing claims to Medicare for reimbursement at the full, undiscounted price. Organon agreed to settle the case for $31 million in October 2014. [18]

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References

  1. ↑ "Organon International 1923". Science Museum Group. Retrieved 4 June 2021.
  2. ↑ "OGN - Organon & Co". Seeking Alpha. Retrieved 4 June 2021.
  3. ↑ "2023 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. February 26, 2024.
  4. ↑ costar.com
  5. 1 2 3 4 "Organon & Co" (PDF). SEC. Organon & Co. Retrieved 30 September 2023.
  6. ↑ "Saal van Zwanenberg". Brabants Erfgoed. Retrieved 30 May 2023.
  7. 1 2 "Organon History 1920s". Organon. Archived from the original on 9 December 2006. Retrieved 19 June 2010.
  8. 1 2 "81 Years of Organon at a Glance". Organon. Archived from the original on 9 March 2005. Retrieved 19 June 2010.
  9. ↑ "Schering-Plough Acquires Organon BioSciences". Medical Net News. 20 November 2007. Retrieved 19 June 2010.
  10. ↑ "Why Germany and Much of the European Union is Losing its Pharmaceutical Industry" (PDF). American Enterprise Institute. Archived from the original (PDF) on 9 July 2013. Retrieved 21 February 2013.
  11. ↑ "Merck and Schering-Plough to Complete Merger Today" (Press release). Merck & Co. November 3, 2009. Archived from the original on November 7, 2009. Retrieved 2010-07-16.
  12. ↑ "Merck & Co. To Move Global HQ; Names Organon as New Spin-off". dcatvci.org. 14 May 2020. Retrieved 2020-08-19.
  13. ↑ "Merck SEC Information Statement". sec.gov. 20 Apr 2021. Retrieved 2023-01-19.
  14. ↑ Block, Jonathan (2021-06-03). "Merck spinoff Organon begins trading on the NYSE today; Organon down 5% | Seeking Alpha". seekingalpha.com. Retrieved 2023-05-04.
  15. ↑ "Organon to Acquire Forendo Pharma".
  16. ↑ "Women's Health Gets a Boost as Merck Spinoff Acquires New Pipeline".
  17. ↑ "Biosimilars". FDA. FDA. Retrieved 30 September 2023.
  18. ↑ Wiessner, Daniel (15 October 2014). "Merck unit to pay $31 mln to settle fraud claims by U.S. states". Reuters. Retrieved 17 February 2021.
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