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Akzo Nobel NV (Arnhem, the Netherlands, www.akzonobel.com) plans to spin off its pharmaceutical division by creating a separate company, Organon Biosciences.
Akzo Nobel NV (Arnhem, the Netherlands, www.akzonobel.com) plans to spin off its pharmaceutical division by creating a separate company, Organon Biosciences. Akzo will first float a minority listing of Organon Biosciences through an initial public offering. It then intends to separate its pharmaceutical business fully within two to three years.
The final timing for these separation moves is "dependent on important developments within Organon’s pipeline which are expected in the second half of 2006, including Phase III data for asenapine, as well as on market conditions," said the company in a prepared statement.
The decision to spin off its pharmaceuticals business is part of an overall company restructuring announced by the Dutch chemicals company, which is also creating a separate company for its coatings and chemicals business following a series of planned and executed divestments in its chemicals portfolio.
"Over recent years, we have made significant progress related to our strategy of fixing pharma, refocusing our chemicals portfolio and continuing to grow and invest in our coatings business," said Han Wijers, CEO of Akzo Nobel, in a prepared statement.
The new pharmaceutical business will include Organon, Akzo’s human health care business, and Intervet, its animal health business. Organon posted 2005 revenues of 2.4 billion euros ($2.9 billion), up 3 percent year-over-year. Intervet had 2005 revenues of nearly 1.1 billion euros ($1.3 billion), up 7 percent year-over year.
Toon Wilderbeek, Akzo Nobel’s board of management member responsible for pharmaceuticals will be the designated CEO of the new company.