Merck announced that its spinoff Organon has agreed to acquire commercial-stage medical device company Alydia Health in a deal valued at around $240m.

Established in 2010, Alydia Health mainly focuses on the prevention of maternal morbidity and mortality caused by postpartum hemorrhage (PPH) or abnormal postpartum uterine bleeding.

Alydia manufactures Jada System, which aims to control and treat abnormal postpartum uterine bleeding or hemorrhage when conservative management is warranted.

In August last year, the company secured 510(k) clearance from the US Food and Drug Administration (FDA) for its Jada System.

The approval was based on the data from the PEARLE prospective, single-arm and investigational device exemption (IDE) clinical study.

Alydia Health CEO Rob Binney said: “Alydia Health is thrilled to join Organon as we hold a similar vision to bring technology and therapeutic solutions to market that can improve outcomes for women in need across the globe.

“Our goal is to help make childbirth safer for more women. With critical gaps in maternal care, we believe this acquisition will potentially accelerate the delivery of the Jada System to more women and communities in need.”

The transaction consists of $215m upfront payment and $25m contingent milestone payment.

Merck stated that the $50m upfront payment will be paid prior to the spinoff of Organon and the $165m will be paid by Organon upon the completion of the acquisition. The remaining amount will be paid based on the achievement of the milestone.

Subject to customary closing conditions and completion of the spinoff of Organon from Merck, the deal is expected to be completed by the end of the second quarter this year.

Based in Jersey City of New Jersey, Organon will offer a portfolio of more than 60 medicines for the treatment of women’s health.