• In a move to free up a cash windfall and streamline the business, Merck & Co Inc (NYSE: MRK) had long planned to slice away its women’s health business into a standalone spinoff.

  • As of Thursday, that spinoff, dubbed Organon, is now a public entity all its own. Organon & Co. (NYSE: OGN) debuted on the NYSE.

  • As a part of the spinoff, Merck will receive a $9 billion special tax-free dividend that it will use for a future acquisition.

  • Organon is focused on Nexplanon, a long-active reversible contraceptive that has a patent expiring in 2027.

  • Last year, its sales were around $680 million. The company said it could boost sales to more than $1 billion in 2021.

  • Price Action: MRK shares are down 3.3% at $73.36, while OGN is down 4.6% at $33.63 during the market session on the last check Thursday.

See more from Benzinga

  • Click here for options trades from Benzinga

  • BriaCell Stock Doubles After Reporting Overall Survival Benefit in Pretreated Breast Cancer Patients

  • Merck's Keytruda/Chemo Combo Therapy Wins EU Backing For Esophageal Cancer

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.