Organon (NYSE: OGN) to sell JADA postpartum for $465 million

Organon (NYSE: OGN) announced an agreement to sell its JADA System medical device to Laborie Medical Technologies Corp. for up to $465 million, according to a company press release.

The transaction includes $440 million to be paid at closing, subject to certain adjustments, and a potential additional payment of up to $25 million based on achieving specific 2026 revenue targets. Approximately 100 employees are expected to transfer to Laborie as part of the deal.

The JADA System is a medical device that uses intrauterine vacuum to control and treat abnormal postpartum uterine bleeding or hemorrhage. Organon acquired the device in June 2021 and states it has helped more than 136,000 new mothers in over 20 countries.

The transaction value represents 6.5 times JADA’s trailing 12-month revenues. Net proceeds will be applied to debt reduction as part of Organon’s objective to reduce its Net Debt to Adjusted EBITDA ratio.

“This transaction puts JADA in the hands of Laborie, a leading medical technology innovator with an established history in maternal health,” said Organon Interim CEO Joseph Morrissey.