Pharma BD Deal Intelligence

Schering-Plough Corp. / Organon BioSciences N.V. (Akzo Nobel)

2007 · Acquisition/Merger · $14.5B · Complete

Schering-Plough paid $14.5B cash for Organon, gaining fertility, contraception, and animal health franchises plus a deeper late-stage pipeline—but the deal strained Schering-Plough enough that Merck swallowed the whole company just two years later in a $41.1B reverse merger.

WRONG BY 27 POINTS

Organon deepened Schering-Plough's pipeline but the financial and strategic strain helped make Schering itself a takeover target — Merck absorbed the whole company just two years later

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Top 25 largest deals of the 2000s

Ranks computed across 828 graded deals (Critic + Outcome Score both present).

The coverage arc

Mar 12, 2007 CNBC / Reuters Bullish

Schering-Plough Corp will buy Organon BioSciences, the drug unit of Netherlands-based Akzo Nobel, for $14.4 billion, giving the U.S. drugmaker an array of…

Nov 19, 2007 FTC Neutral

FTC challenged the acquisition over overlap in animal health (poultry vaccines) and required divestitures, but cleared the broader human pharmaceutical deal.

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EUR 11B / $14.5B cash. Closed Nov 2007. Human + animal health. Source: CNBC, Fierce Biotech, AkzoNobel press release.

Did it work? Outcome assessment

Organon deepened Schering-Plough's pipeline but the financial and strategic strain helped make Schering itself a takeover target — Merck absorbed the whole company just two years later

Strategic verdict
Partially Achieved

Key facts

Disease & market context

Women's Health (Contraception & Fertility)

Disease Overview

Hormonal contraception and assisted reproduction are large, durable women's health categories with millions of US patients on therapy. Organon was a top-tier contraceptive franchise (NuvaRing vaginal ring, Implanon subdermal implant) and a fertility-hormone leader (Follistim/Puregon, corifollitropin alfa pipeline).

Competitive Landscape

Organon's NuvaRing (etonogestrel/ethinyl estradiol) competed against Wyeth's oral contraceptives (Loestrin, Lo Ovral), Bayer's Yasmin/Yaz, Ortho-McNeil's Ortho Tri-Cyclen and Ortho Evra patch, and Merck's Implanon implant. In fertility, Follistim/Puregon (follitropin beta) competed with Serono's Gonal-F (follitropin alfa) and Ferring's Bravelle/Menopur. The deal gave Schering-Plough an instant beachhead in two new franchises — women's health and CNS — that complemented its cardiovascular (Zetia/Vytorin), respiratory, and immunology businesses with effectively zero therapeutic overlap. Late-stage CNS pipeline assets — asenapine (Saphris) for schizophrenia/bipolar and sugammadex (Bridion) for neuromuscular blockade reversal — provided pipeline depth Schering-Plough lacked, since its internal portfolio was concentrated in Phase II. Asenapine carried risk: Pfizer had walked away from a co-development partnership in 2006, raising commercial-fit concerns. Schering-Plough projected $500M annual cost synergies within three years. The deal closed November 2007 ahead of Schering-Plough's own 2009 sale to Merck, which spun the women's health business out as Organon & Co. in 2021.

Related deals — scored

DealYearValueOutcome
Schering-Plough Corp. / Organon BioSciences N.V. (Akzo Nobel) (this deal)2007$14.5B48
Schering-Plough Corp. / Organon International2007$14.4B56
Schering-Plough Corp. / Organon & Co.2007$14.4B48
Schering-Plough Corp. / NeoGenesis Pharmaceuticals200530
Thermo Fisher Scientific Inc. / Life Technologies Corporation2013$15.1B84
Merck KGaA / Sigma-Aldrich Corporation2014$17.0B80
Becton, Dickinson and Company / C.R. Bard Inc.2017$24.0B77

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