Organon, a women’s healthcare-focused drugs developer about to be spun off from US-listed pharmaceuticals company Merck, has agreed to acquire Alydia Health for up to $240m.
Organon will pay $215m upfront plus a $25m contingent milestone payment. Fifty million dollars of the upfront payment will be paid prior to the spinoff of Organon expected in the second quarter; $165m will be paid by Organon upon the close of the acquisition, and the remainder will be paid by Organon upon achievement of the milestone.
Founded in 2010, Alydia is a medical device company focused on preventing maternal death through bleeding during birth.
In August last year, Axa Investment Managers, a division of insurance firm Axa, led a $13.9m series C round for US-based obstetrics device developer Alydia Health through its Impact Investing Strategy vehicle.
The round also included social impact investment fund Global Health Investment Fund (GHIF) and venture capital firm Avestria Ventures. It followed $10m in series B funding from GHIF, Astia Angels and unnamed additional investors in September 2018.
Guggenheim Securities was financial adviser to Alydia Health.
