Akzo Nobel shareholders vote to demerge Organon

Akzo Nobel shareholders have voted to split the company in two, meaning that its pharmaceutical arm, Organon BioSciences, will become an independent, publicly-owned company.

At an extraordinary general meeting, shareholders accepted a plan that will see an initial public offering worth 20 to 30 per cent of Organon’s value listed on the Euronext Amsterdam stock exchange, followed by the full divestment of the company two or three years later.

The Dutch parent company said that the timetable for separation would depend on Organon’s progress in advancing its product pipeline, as well as market conditions.

Last month, Jan Hein De Vroe, an analyst with Kempen, said that Akzo Nobel could be waiting on new data for asenapine, a treatment for bipolar disorder, which has the potential to be a blockbuster on the market.

Hans Wijers, chief executive officer of Akzo Nobel, remarked: “I am pleased that the company’s shareholders have given their approval for Akzo Nobel to move forward with its plans and we can now make further progress towards achieving our goal of creating two strong, independent companies.”

He added that he hoped Organon would be listed on the Amsterdam stock exchange by early 2007.

Organon specialises in gynaecology and fertility drugs, as well neuroscience therapies and anaesthetics.

In June, Toon Wilderbeek, Organon’s president, told Reuters that Organon was big enough to do its own research amid claims that the company would have to collaborate or accept a takeover in order to compete.

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