Akzo Nobel to separate Organon Pharmaceuticals in IPO

Dutch firm Akzo Nobel is planning to spin off its Organon pharmaceutical arm within two to three years, according to a statement.

The company will post a minority IPO for Organon, listing on the Euronext Amsterdam, prior to the company becoming fully independent. It said that the timing for the demerger would be dependent on the phase III results of psychotropic asenapine.

Hans Wijers, CEO of Akzo Nobel, said that creating the two companies would boost value for its shareholders and that the both Organon’s biochemical business and Akzo Nobel’s coating and chemicals work could survive interpedently.

“The increased management and strategic focus afforded through the separation of pharmaceuticals will enable us to accelerate growth and invest in attractive expansion opportunities in our coatings and chemicals businesses markets,” he said.

Stressing the independence of Akzo Nobel, he added: “Our coatings business is the market leader, and our recent acquisitions underscore our commitment to pursuing opportunities globally, including in emerging markets.”

Asenapine has already won Organon a development and commercialisation contract with Pfizer. The drug is designed to treat a selection of conditions, including bipolar-disorder and schizophrenia.

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