Organon future ‘to be decided in second half of 2006’

Dutch chemicals group Akzo Nobel has reported that the timing of Organon’s floating on the stock exchange will be decided in the second half of 2006.

Organon, the pharmaceutical division of Akzo Nobel, yesterday reported revenue growth of 12 per cent, as well as record sales of its fertility product, Purogen. NuvaRing also demonstrated “significant” sales growth, although the company was knocked back by the FDA for the approval of Livial.

Earlier this year, Organon also announced a collaboration with Sareum Holdings to develop new therapies for the treatment of autoimmune diseases like rheumatoid arthritis.

However, many analysts have focused on the timing of Organon’s much-vaunted floating on the stock exchange, as well as speculation that the subsidiary could be bought by a larger pharmaceutical power.

Reuters quotes an interview with Rob Frohn, Akzo Nobel’s chief financial officer, on CNBC television. He said: “In the next two quarters you’ll see more news from us on the acquisition front.”

“We will make up our mind on the timing of the [initial share purchase offering] in the second half,” he added.

Speaking of his company’s recent performance, Mr Frohn said: “This good performance demonstrates the strength of Organon’s current product portfolio, especially our biotech product Puregon, which enjoyed a record quarter, while the growth momentum of NuvaRing remains impressive.”

Organon employs nearly 600 people in the UK, who are based in Cambridge. The company also has a multi-million pound research facility in Newhaven, Scotland.

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