Schering-Plough to acquire Organon BioSciences

The board of Schering-Plough has approved the acquisition of Organon BioSciences in a deal worth a cash consideration of 11 billion euros (7.4 billion pounds).

Akzo Nobel’s drugs unit, Organon manufactures the contraceptives Implanon and Marvelon, while the sale will also include the world’s largest maker of animal vaccines, Bloomberg reports.

The acquisition is expected to build on Schering-Plough’s primary care activities and affords the New Jersey-headquartered firm access to products in women’s healthcare and central nervous system.

Fred Hassan, chairman and chief executive of Schering- Plough, also noted that Oragon will add five compounds in phase III development, along with “promising” projects in phase II development, to the group’s portfolio.

“We believe that the two cultures are very much in tune,” he added, noting that “the acquisition of Organon BioSciences enhances Schering-Plough’s strength in human and animal biologic products, including the potential to develop human vaccines”.

Meanwhile, commenting on the value of the deal, Wim Hoste, an analyst at KBC Securities in Brussels, told Bloomberg: “It’s a fantastic price.” A further six analysts previously questioned by the news provider estimated Organon would be acquired for around eight billion euros.

The transaction is expected to be complete by the end of the year.