By Dhirendra Tripathi
The spinoff is expected to net Merck incremental operating efficiencies of approximately $1.5 billion over three years, with approximately $500 million realized during 2021. In connection with the spinoff, Merck received approximately $9 billion of Organon.
The announcement of the spin-off is one of the several positive developments that have happened at the German company this month.
The completion of the spin-off follows three announcements on Tuesday, only one of which was made by Merck.
The first was the launch of VAXELIS, the only hexavalent (six-in-one) combination vaccine in the U.S. indicated for active immunization to help prevent diphtheria, tetanus, pertussis, poliomyelitis, hepatitis B, and invasive disease due to haemophilus influenzae type b.
VAXELIS is approved for use as a 3-dose series in children 6 weeks through 4 years of age (prior to the 5th birthday).
In Tuesday’s second announcement, biotechnology company Immutep (NASDAQ: IMMP ) announced it will collaborate with Merck in the safety trial of an immunotherapy treatment the Sydney, Australia-based company is developing for cancer.
The trial will be done in combination with another immunotherapy that Merck and GlaxoSmithKline (NYSE: GSK ) are jointly developing.
Tuesday’s third disclosure involving Merck was California-based Sutro Biopharma (NASDAQ: STRO ) saying it has received a milestone payment from Merck for patient enrollment to study next-generation cancer and autoimmune therapeutics.
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