Organon has agreed to sell its JADA® System, a postpartum hemorrhage device, to Laborie for up to $465 million. The deal will close in the first quarter of 2026 and includes $440 million payable at closing plus an earn‑out of up to $25 million tied to 2026 revenue performance.
The JADA System generated $61 million in revenue in 2024, a 40 % increase from the prior year, and represents 6.5 times its trailing‑12‑month revenue. About 100 employees are expected to transfer to Laborie, and the sale will provide Organon with cash that can be directed toward debt repayment and share repurchases.
Organon’s debt stood at $8.9 billion as of December 31, 2024 and remained unchanged through June 30, 2025. The company’s net debt‑to‑equity ratio was 1,213.6 % as of June 29, 2025, and it has set a target of reducing net leverage to below 4× by year‑end 2025. The proceeds from the JADA sale are a key component of that deleveraging plan.
The divestiture allows Organon to focus resources on its high‑growth women’s‑health and biosimilar lines. Nexplanon is projected to generate more than $1 billion in revenue in 2025, while Vtama is expected to reach $150 million. By shedding a non‑core asset, Organon can accelerate investment in these core growth areas.
Laborie, a leading diagnostic and therapeutic medical‑technology company, will add the JADA System to its obstetrics portfolio, broadening its product mix and market reach. While Laborie’s own financials are not disclosed in the announcement, the acquisition is expected to strengthen its position in the obstetrics segment.
Joseph Morrissey, Organon’s interim CEO, said the JADA team would be well positioned at Laborie and that the transaction is “another step toward improving capacity in Organon’s balance sheet to pursue other growth opportunities.” Kevin Ali, Organon’s CEO, emphasized the company’s commitment to reducing debt and achieving a net leverage ratio below 4× by year‑end 2025.
No specific market reaction data were reported, but the deal signals Organon’s continued focus on deleveraging and on concentrating its portfolio around its core growth pillars.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.