Spinoff updates: Merck’s Organon and Novartis’ Sandoz

Home/Pharma News | Posted 26/11/2021 post-comment0 Post your comment

Merck spinoff Organon has announced third quarter revenue of US$1.6 billion in 2021. This shows slight decline in women’s health medications but growth in biosimilar sales. Following its 2021 third quarter review, Novartis is considering the spinoff of its biosimilar division, Sandoz, as a standalone company.

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Organon stands alone
Organon launched as a standalone global women’s health company in June 2021 [1]. Despite being launched as such, it has seen decline in growth of women’s health products since the previous year. This is thought to be largely due to the impact of generics competition on their Nuvaring (etonogestrel/ethinyl estradiol vaginal ring) and the effects of the COVID-19 pandemic on Nexplanon (etonogestrel implant).

Despite this, the company has seen 43% revenue growth in biosimilars, driven largely by demand for Renflexis (infliximab-abda) and Ontruzant (trastuzumab-dttb). Its US$140 million revenue from biosimilars in the third quarter of 2021 is up 41% from the comparable 2020 third quarter.

Sandoz’s standalone future
In its 2021 third quarter review, Novartis has revealed continued pressure for its Sandoz division, who’s sales were down 1% at US$2.4 billion. This was largely due to reduced sales in the US, while sales in Europe were up. Sandoz currently has eight biosimilars launched globally and 15 more in the pipeline.

The Sandoz generics drug unit has seen its global sales fall 4% to US$7.11 billion in the first nine months of 2021, and these were down 17% in the US [2].

In light of this, Novartis has announced the start of a strategic review of the Sandoz division. The review will explore all options for Sandoz, ranging from retaining the business to separation. The review will conclude at the end of 2022. This sparked a recent call by the Social Democratic Party in Switzerland, to acquire and nationalize Sandoz [2].

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References
1. GaBI Online - Generics and Biosimilars Initiative. Organon launches as new global women’s health company and appoints leaders in Latin America [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2021 Nov 26]. Available from: www.gabionline.net/pharma-news/organon-launches-as-new-global-women-s-health-company-and-appoints-leaders-in-latin-america
2. GaBI Online - Generics and Biosimilars Initiative. Swiss Social Democrat’s for nationalization of Sandoz [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2021 Nov 26]. Available from: www.gabionline.net/pharma-news/swiss-social-democrat-s-for-nationalization-of-sandoz

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