Schering-Plough to acquire Organon BioSciences

Schering-Plough Corporation is to acquire Organon BioSciences, the human and animal health care businesses of Akzo Nobel, for approximately Euro 11bn in cash (US$14.4bn). The transaction is expected to close by the end of 2007.

Organon BioSciences has sales of nearly $5bn, of which the pharmaceutical business, Organon, accounted for $3.4bn in 2006, including products such as Follistim/Puregon, a follicle-stimulating hormone for infertility; Esmeron/Zemuron, a muscle relaxant; and NuvaRing and Implanon for contraception.

In addition, Organon BioSciences currently has five compounds in Phase III development, including:

• Asenapine, a novel psychopharmacologic agent for the treatment of patients with schizophrenia and acute mania bipolar disorder;
• Sugammadex, for the reversal of neuromuscular blockade induced during surgical procedures;
• NOMAC/E2, an oral contraceptive product containing nomegestrol acetate, a novel progesterone, and estriadiol, a natural estrogen;
• ORG36286, a long-acting recombinant follicle-stimulating hormone for infertility; and
• Esmirtazapine (ORG50081), for the treatment of insomnia and potentially for hot flushes in menopausal women.

'Organon BioSciences will be an excellent fit with Schering-Plough - strategically, scientifically and financially,' said Fred Hassan, chairman and ceo, Schering- Plough. 'It builds on our growing strength in primary care, giving us immediate access to central nervous system (CNS) and women's healthcare products.

'The acquisition 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. In addition, it enhances Schering-Plough's strength in human and animal biologic products, including the potential to develop human vaccines.'

Schering-Plough expects to achieve annual synergies of $500m within three years of closing the transaction; it will take three years from the closing to reach this level of synergies.